The agency of the Republic of Kazakhstan for competition protection (ANTIMONOPOLY AGENCY)

News

Press-release

27 may 2011 y.

At the Agency of the Republic of Kazakhstan for competition protection (Antimonopoly Agency) the Board session is held

 

Within the session, the results of investigations of competition law violations, applications for economic concentration and other issues were considered.

The presented results of investigations of competition law violations confirmed the findings of abuse of dominant position by market subjects such as “Akzhol LTD” LLC., “Atameken-nan 2000” LLC. and “Shygysenergotrade” LLC.

Thus, “Akzhol LTD” LLC. (Hereinafter - LLC), being a dominant in the sphere of HDW disposal services, abused its dominant position by unreasonably refusing to conclude contract for HDW disposal services with a market subject when LLC was able to provide such services and such a conduct contradicts to subpoint 5, article 13 of the Competition law of the RK.

It should be noted that during investigation, LLC informed about its readiness to conclude a relevant contract with an applicant.

“Atameken-nan-2000” LLC., also abused its dominant position by applying different prices when selling bread (made of flour of the highest sort – 50%, made of flour of the 1st sort – 50%) to some consumers per price of 37 tenge and for others per price of 39 tenge as well as applied different conditions to equal contracts  (with regard to penalty sanctions and payment conditions) during 2010 year, which was a violation of subpoint 2, article 13 of the Competition law of the RK.

The Agency Board came to decision to issue orders related to these market subjects to cease competition law violations and eliminate their consequences.

The fact of abuse of dominant position by “Shygysenergotrade” LLC (hereinafter-LLC) in the form of infringement of legitimate consumer rights in the East Kazakhstan oblast was established when the consumers received bills with unreasonably accrued fees for consummated electrical energy in December, 2010 year, calculated on the basis of tariffs, which became valid only since 01.01. 2011 year and, also, consumers, who had multirate metering appliances with day zones, received payment bills for consummated electrical energy, calculated on the basis of an average tariff.

Earlier, LLC was subject to administrative liability by the decision of the oblast court in the East Kazakhstan oblast of the 26th August, 2010 year for the typical violation. In this connection, upon the outcomes of this investigation, the decision to commence administrative case against LLC with subsequent fine imposition in the amount of 20 % of the revenues, received in the result of conducting monopolistic activity as for the recurrent violation within the year, was accepted.

In addition, the Agency Board confirmed the results of investigations upon the findings of anticompetitive concerted actions in the form of fixing and maintaining prices for bread (subpoint 1, point 1, article 11 of the Competition law of the RK) in the conduct of individual entrepreneurs of the West Kazakhstan oblast (“P/S Popkov A.B.”, “Taletskyi V.N.”, “Abakumova A.I”, “Shyrokova Y.U.”, “P/S Dotsenko A.V.”, “Kotov V.F.”, “Issayev H.H.”, “Antipov V.M.”, “Synelnikov A.V.” (The common share constitutes 67,3 %), who simultaneously increased prices for bread of the highest sort per 10 tenge in the period from January 16 to 19 of the current year while the net cost (production cost) of the produced goods was the same (either, very insignificant increase took place).

Judging upon the results of this investigation, the Agency Board decided to commence administrative cases against these market subjects.

Also, the fact of anticompetitive conduct of the state body – SA “The Department of finances of c. Uralsk” (hereinafter-Department) in the form of restricting access to the hot meal organization services market by means of providing individual market subjects with unreasonable benefits, thus, putting them in more advantageous position in comparison with competitors (points 8, 9 article 33 of the Competition law of the RK) was examined at the Agency Board session. The Board came to decision to issue order related to the Department to cease competition law violations.

Upon the facts of unfair competition, the outcomes of investigations were confirmed and the decision to commence administrative cases against the following bodies was accepted:

- PE “Chapchikov N.A.” with regard to disseminating knowingly misleading, unfair and false advertisement by means of publishing advertising information about data and guarantees for refrigerated display cases in the newspapers which was irrelevant to reality and deceived consumers (article 21 of the Competition law of the RK);

- “Smart Unicom” LLC. (hereinafter - LLC) with regard to call for boycott of the seller (supplier) by means of concluding contracts with builders for exploitation of telecommunication infrastructure in individual residential houses, by the conditions of which the exclusive right of LLC for operational activity (supply of telecommunication services to subscribers) on the territory of objects after their introduction into service was envisaged (Article 23 of the Competition law of the RK).

By reference to this exclusive right, LLC prevented subscribers from concluding contracts with other suppliers of telecommunication services.

The Board also listened to the report about the implementation of the issued by Agency order related to “MAEP - Kazatomprom” (hereinafter - Company) to cease competition law violations and eliminate their consequences.

During investigation, it was found out that the Company unreasonably accrued tariffs for electrical energy – 27 446 742 kiloWatt of e/e for the total cost of 111 960 thousand tenge in the period from 2006 until 2008 year.

As of the 1st of May, 2011 year, according to the information of Company, the recalculated sum (money, reimbursed to consumers) was 69 634 115, 74 tenge or 62% of the total recalculated sum. 

Basing on the study of applications for economic concentration, the Board decided to give approval for transactions on acquiring general plant (fixed production assets), shares of ownership and etc., in the registered capitals of other companies by the following market subjects: “National innovation find” JSC., “TechnoCenter LTD” LLC., “The holding group ALMEX”, Harad Operation UK Limited Company, “Doszhan temir zholy” JSC., “Shpis S.V.”, Freight International Holding B.V. Company, “KNOC Black Hill LTD” Company, “Denholm Zholdas” LLC., “Arion Invest Commerce” LLC., “HYDROCHINA International  Engineering Co., Ltd” and “HYDROCHINA Chengdu Engineering Corporation” Company, “Cooperative KMG PKI U.A.” Company.

The Board also came to conclusion to introduce some amendments and additions into the State register of market subjects, having dominant or monopolistic position.

Also, the Board members approved the report for 2010 year about the situation with competition at separate commodities markets and measures, taken with regard to restricting monopolistic activity, which is annually submitted to the Administration of President of the Republic of Kazakhstan and the Government of the Republic of Kazakhstan as provided in the Competition law of the RK.


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