An economic entity shall have a strong bargaining position, where:
- it can ensure the entry of relevant goods into the sales market due to its significant influence in the relevant sector, and it is not possible for other economic entity to act in given sector without cooperation with the given economic entity; or
- our or more trade facilities (a trade network) the annual sales revenue whereof exceeds the total sum of AMD 3 billion are (is) under the common management of that economic entity; or
- four or more trade facilities (a trade network) operate under the same trademark or other identification mark owned or used by that economic entity.
(For detailed information see Article 11 of RA law “On Protection of Economic Competition”).
Having a strong bargaining position shall not be prohibited by the law, the abuse of strong negotiating position shall be prohibited.
Abuse of a strong bargaining position shall be considered as the following:
- an action or conduct of an economic entity not justified by economic conditions or factors and harms or may harm the interests of a party with a weak position in the negotiations.
- unjustified refusal to acquire goods, establishing or applying discriminatory conditions, unreasonable termination of entrepreneurial relations, forcing on a party to a contract terms, as well as other cases prescribed by the law.
(For detailed information see Article 12 of RA law “On Protection of Economic Competition”).
- Administrative proceedings related to abuse of strong bargaining 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 strong bargaining 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 strong bargaining 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 4 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 strong negotiating 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.
