An economic entity shall be deemed to have a monopolistic or dominant position in the goods market if:
- the economic entity has no competitor as a seller or acquirer;
- it has a market power in the goods market;
- as a seller or acquirer, it captures market shares, prescribed by the RA law “On Protection of Economic Competition”, in terms of sale or acquisition volumes.
(For detailed information see Points 2, 3, 4 of Part 2 of Article 7 of RA law “On Protection of Economic Competition).
Having a monopolistic or dominant position shall not be prohibited by the law, the abuse of monopolistic or dominant position by economic entities shall be prohibited.
Abuse of a dominant position shall be deemed to be the following:
- setting or applying unjustified or discriminatory sale or acquisition prices or unjustified increase, decrease or maintenance of the price of goods;
- establishing or applying discriminatory conditions (including prices) with regard to other economic entities or consumers in other equal conditions;
- an action or conduct aimed at obstructing (restricting) entry of another economic entity into the market or ousting them from the market;
- setting and/or applying unjustifiably high or low prices;
- unjustified reduction in or termination of import or production of goods to the detriment of the consumer interests, or creation or maintenance of deficit in a goods market by retaining, spoiling or destroying goods or by other means;
- forcing on a party to a contract or a person willing to conclude a contract, including trade facilities, economically and/or technologically unjustified conditions not favourable for them or not related to the subject matter of the contract;
- other cases prescribed by the law.
In case of abusing the dominant position two or more times in a year, the Commission may adopt a decision on disaggregation of economic entities.
(For detailed information see Part 2 of Article 8 of RA law “On Protection of Economic Competition).
A sale or acquisition price set by an economic entity having a dominant position shall be deemed to be an unjustifiably high price, where it is concurrently:
- higher than the sum of the expenses made for production and sale of the goods concerned and the profit gained;
- higher than the price formed in competitive conditions in a comparable goods market;
- a sale or acquisition price set by an economic entity having a dominant position, which is less than the sum of the expenses made for production and sale of the goods concerned and the profit gained, as well as less than the price formed in competitive circumstances in a comparable goods market, shall be deemed to be an unjustifiably low price.
(For detailed information see Article 9 and Article 10 of RA law “On Protection of Economic Competition)
- Administrative proceedings related to abuse of monopolistic or dominant position shall be six months.
- Within a period of two weeks after receiving the decision on initiating proceedings on the offence in the field of economic competition, the respondent in the proceedings may — in case of admitting the fact of commission of the offence attributed thereto and having eliminated the consequences of the offence – file with the Commission a motion on administering expedited proceedings. The Commission shall grant or reject the motion on administering expedited proceedings within 10 days after receiving the motion. The Commission shall render a decision as a result of the proceedings within a period of one month from the day of adopting the decision on administering expedited proceedings.
The amount of a fine imposed for abuse of one’s dominant/monopolistic position shall constitute up to 10 percent of the revenue of the economic entity having committed the offence for the year preceding the offence.
The amount of a fine imposed for abuse of dominant position shall constitute up to 5 percent of the revenue of the economic entity for the year preceding the offence in question in case of administering expedited proceedings.
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 Article 88, Part 3 and Part 13 of Article 93, Article 100 of RA law “On Protection of Economic Competition)
- Who can submit?
Natural or legal persons can submit the report on abuse of dominant or monopolistic position
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 form of submission of the report
The report shall be submitted via electronic platform of the Commission.
The repost 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 form of the report submitted below, sign it, attach the necessary materials and submit it to the Commission.
