Procedure for Reviewing Antitrust Cases in Uzbekistan

In the last few weeks, news about violations of antitrust regulations by businesses and the different types of legal remedies exercised by the Committee for the Development of Competition and Protection of Consumer Rights (hereinafter referred to as the "Committee") has become frequent. A dedicated regulation governs the procedures related to these matters, which is covered by this short article.

I. LEGAL FRAMEWORK

• Law No. 850 on Competition

• Law No. 776 on Advertisement

• Code on Administrative Liability

• Regulation No. 225 on Initiating and Reviewing Cases for Breaches of Legislation on Competition, Protection of Consumer Rights, and Advertisement

II. JURISDICTION

An antitrust case is initiated by a territorial division of the Committee located in the wrongdoer’s residence area. However, the Committee, based on a decision of the Chairman, retains the right to review cases that fall within the competence of the territorial divisions.

The following factors serve as the basis for initiating a case by the Committee:

• Revealing potential breaches by controlling bodies during inspections

• Information submitted by state agencies

• Submissions by judicial and physical persons

• Materials in mass media regarding potential breaches

Cases are reviewed by the Commission, whose composition is approved by an order of the relevant division.

III. REVIEW OF THE CASES

If the Commission finds sufficient evidence of a potential breach, it issues a procedural order to initiate the case. The regulation sets out requirements for the content of that order; however, since these requirements are not decisive in settling the case, they are not covered here.

Upon opening a case, it should be considered within a one-month period, which may be extended for an additional one month in exceptional circumstances.

Proceedings can be conducted either in Uzbek, Karakalpak, or another language decided by the Commission, taking into account the nationality of the parties, or translation may be provided.

The Commission may suspend reviewing the case under the following circumstances:

• Another case that may affect the result of the case is under review

• Receipt of an expert’s or specialist’s opinion is pending

• The case involves further examination of facts

• Force majeure

• During a criminal investigation

The Commission may withdraw a case under the following circumstances:

• The breach of relevant legislation is not confirmed

• The subject of the case is liquidated or deceased

• The breach is voluntarily remedied by the subject

• The subject matter of the case is being considered by a court

The results of the case review are reflected in a decision signed by the members of the Commission. The decision may be announced in the mass media, provided strict compliance with data protection regulations.

IV. ENFORCEMENT OF DECISIONS

To enforce the decision, the Commission issues an indication directed to the wrongdoer, outlining a set of actions to remedy the violation of law. These remedies must be implemented within one month, which may be extended by the Chairman of the Commission if the wrongdoer submits a petition for an extension.

If the economic effect of the breach is significant, the Commission may impose financial sanctions, the amount of which varies according to the nature of the wrongdoing. Article 47 of the Law on Advertisement and Article 42 of the Law on Competition prescribe the types and amounts of these sanctions.

Non-compliance with an indication within the prescribed time frame results in administrative liability as stated in Article 178 of the Code on Administrative Liability. The administrative punishment is 1 to 3 Basic Calculation Amounts (BCAs) for citizens and 5 to 10 BCAs for company officials. As of August 19, 2024, 1 BCA equals 27 USD.

Participants in the case may appeal the decision (including the indication or any other act issued by the Commission) to the Committee or a competent court within one month. During the review of the appeal, the effect of that act is suspended.

Our lawyers have significant experience in antitrust cases in Uzbekistan, gained from multiple appearances before the Competition Authority. This practical experience can help resolve your dispute favorably if you choose to engage our services.

If you need an experienced lawyer for interactions with the antitrust body or have any questions about the procedure described above, please do not hesitate to contact us at info@fairlex.uz.