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Concentration

The following shall be deemed to be concentration of economic entities:

  • absorption between economic entities;
  • consolidation of economic entities;
  • acquisition by an economic entity of the 20 percent or more of the assets or unit share of another economic entity;
  • acquisition of the right to use the object of intellectual property, including means of identification;
  • establishment of a legal person in the Republic of Armenia by more than one economic entity;
  • any transaction, action, reorganisation or conduct of economic entities due to which the economic entity may directly or indirectly influence the adoption of decisions or the competitiveness of another economic entity, or may directly or indirectly influence the adoption of decisions or the competitiveness of another person or may have an impact on the competitive situation in a goods market.

(For detailed information see Part 1 and Part 9 of Article 13 and Article 14 of RA law “On Protection of Economic Competition”)

  • The supervision on concentration shall be carried out to assess the competitive situation, to reveal or foresee the possibility of restricting the economic competition in the relevant goods market, or to clarify the issue of leading to a dominant position or causing possible harm to the consumer interests due to concentration.

The types of concentrations are:

  •  horizontal concentration, when the concentration shall take place in the same goods market;
  • vertical concentration, when the concentration shall take place in different goods markets having certain interrelation;
  • mixed concentration, when the concentration shall take place in different goods markets.

Concentration of economic entities shall be subject to declaration, where:

  • the total value of the assets or the total amount of the revenues of the parties to the concentration has exceeded 4 billion AMD;
  • the total value of the assets or the total amount of the revenues of at least one of the parties has exceeded 3 billion AMD;
  • at least one of the parties to the concentration has a dominant position in a goods market in the Republic of Armenia.

In case of a group of persons, the calculation of the value (amount) of the assets or revenues shall be based on the sum total of the value (amount) of the assets or revenues of economic entities included in the group of persons, who are involved in entrepreneurial activities.

(For detailed information see Article 15 of RA law “On Protection of Economic Competition” and Decision of Competition Protection Commission N322-N dated November 9, 2021).

The parties to the concentration shall apply to the Commission for permission of concentration of economic entities.

The concentration shall be subject to declaration before being put into effect. The time of putting the concentration into effect is the the time of performing the relevant action, reorganisation or concluding the transaction. In case the requirement of state registration or state record-registration is provided by the legislation, the time of putting the concentration into effect is considered to be the moment state registration or state record-registration․

The proceedings for assessment of concentration conducted by the Commission shall be three months․ Upon a reasoned decision of the Commission, the time limit for the proceedings shall once be extended to up to three months.

The mixed concentration and concentration of economic entities involved in a group of persons shall be assessed under simplified procedure, the time limit of which shall be 1 month.

As a result of assessment of the concentration subject to declaration the Commission shall adopt the decision on:

  • on permitting the concentration;
  • on permitting the concentration under the condition;
  • on prohibiting the concentration.

The Commission shall prohibit the concentration subject to declaration, where:

  • according to the results of studies of the Commission, the concentration would result in prevention, restriction, blocking or otherwise worsening of the economic competition in the relevant goods market; or
  • according to the results of studies of the Commission, the concentration would result in establishment or strengthening of a dominant position, except for the cases when the economic entity substantiates that the given concentration will ensure favourable competitive conditions in the goods market, and will not harm the consumer interests; or
  • according to the results of studies of the Commission, the concentration would harm the consumer interests; or
  • a party to the concentration does not submit information considered by the Commission essential for assessing the impact of the concentration in the relevant goods market, and it is impossible to obtain that information from other sources; or
  • a party to the concentration has submitted false information considered by the Commission essential for assessing the impact of the concentration in the relevant goods market, which has had a negative impact on the progress and results of the study conducted by the Commission.

The decision on permitting the concentration shall be in force for one year, unless a shorter time limit is prescribed by the decision of the Commission.

(For detailed information see Articles 70, 72 and 73 of RA law “On Protection of Economic Competition”).

  • The amount of a fine imposed for failure to declare concentration shall constitute up to five million drams.
  • The amount of a fine imposed for executing a prohibited concentration shall constitute up to 10 percent of the revenue of the economic entity for the year preceding the offence.

When imposing a sanction as a result of administering expedited proceedings։  

  • The amount of a fine imposed for failure to declare concentration shall constitute up to 2,5 million drams․
  • The amount of a fine imposed for executing a prohibited concentration shall constitute up to 5 percent of the revenue of the economic entity for the year preceding the offence.

In case 75 percent of the fine imposed by the decision of the Commission is paid within a period of two months after the entry into force of the decision, the obligation to pay the fine shall be considered as duly performed.

(For detailed information see Articles 88, 93 and 100 of RA law “On Protection of Economic Competition”).

Parties to the concentration shall be obliged to submit to the Commission the application and declaration of concentration before the concentration being put into effect.

The application and declaration are submitted via electronic platform of the Commission
The application and declaration shall also be submitted:

  • via the Commission’s e-mail (info@competition.am);
  • via Unified portal for online requests;
  • in a hard copy.
    It is necessary to fill in the forms of the application and declaration submitted below, sign the application and all pages of declaration, attach the necessary materials և submit it to the Commission.

(For detailed information see Article 68 of RA law “On Protection of Economic Competition” and Decision of Competition Protection Commission N322-N dated November 9, 2021).

The form of application of concentration declaration (in Armenian)

The form of concentration declaration (in Armenian)

Reference attached to the declaration of concentration (on produced, imported and realized products) (in Armenian)

Reference attached to the declaration of concentration (on services provided and carried out activities) (in Armenian)

  • Who can submit?

Natural or legal persons can submit the report on offence in the field of economic competition in writing.

  • What is the time limit to consider the report?

The report shall be considered in the Commission within a period of one month. As a result of consideration of report the Commission shall adopt a decision on initiating proceedings on the offence in the field of economic competition or refusing to initiate proceedings on the offence in the field of economic competition.

The time limit for the administrative proceedings on the offence in the field of economic competition shall be three months. Upon a reasoned decision of the Commission, the time limit for the proceedings shall once be extended to up to three months.

  • The form of submission of the report

The report is submitted via electronic platform of the Commission
The repost shall also be submitted:

It is necessary to fill in the form of the report submitted below, sign it, attach the necessary materials և submit it to the Commission.

 

The form of report for phisical persons (in Armenian)

The form of report for legal persons (in Armenian)

A group of persons is a group of legal and/or natural persons between which there is actual interrelation or control and which meet at least one of the conditions provided for by RA law “On Protection of Economic Competition”.

(For detailed information see Article 4 of RA law “On Protection of Economic Competition”).

The economic entities considered as a group of persons perform their economic activities guided by common economic interests, which in terms of competition legislation allows them to be considered as independent economic entities.

The information concerning the economic entities considered as a group of persons give an opportunity to reveal their real shares, impact and other circumstances in the goods market.

By submitting the list of economic entities included in the group of persons and justifications to the Commission economic entities inform that they act as a group of persons while implementing the economic activity.

In case of posting the list of economic entities included in the group of persons on the official website of the Commission, reorganisations, actions or transactions of economic entities, provided for by RA Law “On Protection of Economic Competition” shall not be deemed to be concentration and shall not be subject to declaration.

(For detailed information see Point 8 and Point 9 of Part 1 of Article 4 and Part 1 of Article 13 of RA law “On Protection of Economic Competition”).

The application shall be submitted to the Commission at least by one of the economic entities included in the group of persons.

The application shall be submitted to the Commission at least one month prior to the relevant reorganisation, action or transaction․

One of the economic entities considered as a group of persons shall, within 10 days following the performance of reorganisations, actions or transactions inform the Commission.

In case of changes within a group of persons at least one of the economic entities included in the group of persons shall submit the application to the Commission at least one month prior to the relevant reorganisation, action or transaction by the same manner and time limit as the procedure and time limit for submitting the list of economic entities included in the group of persons and justifications for them. 

The list of economic entities included in the group of persons and involved with reorganisation, action or transaction shall not be changed at the time of the relevant reorganisation, action or transaction, as compared to the list submitted to the Commission at least one month prior․

The Commission shall consider the application within a period of 10 working days and adopt one of the following decisions:

  • on posting the list of economic entities included in the group of persons on the official website of the Commission;
  • on admitting the fact on failure to observe the form or requirements prescribed by the RA law “On Protection of Economic Competition” and by the decision of the Commission.

In case of adoption of any of the above mentioned decisions, the Commission shall notify the applicant about it within 10 working days after receiving the application.

(For detailed information see Decision of the Commission N 161-N dated July 13, 2021).

The list of economic entities included in the group of persons and justifications for them are submitted via electronic platform of the Commission

The list of economic entities included in the group of persons and justifications for them shall also be submitted:

It is necessary to fill in the form of the application submitted below, sign it, attach the necessary materials և submit it to the Commission.

(For detailed information see Decision of the Commission N 161-N dated July 13, 2021).

 

The form of application in Armenian.