Laws
(With further amendments and supplements)
Adopted on
November 6, 2000
Law of the Republic of Armenia on Protection of Economic Competition
Chapter 6: The State Body For Protection Of Economic Competition
ARTICLE 17. THE STATE BODY FOR PROTECTION OF ECONOMIC COMPETITION OF THE REPUBLIC OF ARMENIA1. To implement the state policy in the field of economic competition protection, a state body for economic competition protection-the Commission-shall be established.
2. The Commission shall be established according to the procedure defined in this Law, shall operate on the basis of this Law, other legal acts and its statute, and shall be independent within the scope of its authorities.
2. The Commission shall be established according to the procedure defined in this Law, shall operate on the basis of this Law, other legal acts and its statute, and shall be independent within the scope of its authorities.
(Article 17 was amended by #HO-107-N Law adopted on 22.02.2007)
ARTICLE 18. OBJECTIVES AND FUNCTIONS OF THE COMMISSION
1. The objectives of the Commission shall be as follows:
a) Protection and promotion of economic competition to protect the development of entrepreneurship and consumer rights;
b) Ensuring of favorable environment for fair and free competition;
c) Prevention, restriction and precaution against anticompetitive practices;
d) Control over the economic competition protection.
2. To accomplish its objectives, the Commission shall perform the following main functions:
a) Protection and promotion of economic competition to protect the development of entrepreneurship and consumer rights;
b) Ensuring of favorable environment for fair and free competition;
c) Prevention, restriction and precaution against anticompetitive practices;
d) Control over the economic competition protection.
2. To accomplish its objectives, the Commission shall perform the following main functions:
- exercise control over the compliance of the economic competition protection legislation;
- examine breaches of the economic competition protection legislation and adopt decisions;
- maintain the Centralized Register (Log) of Economic Entities having a Dominant Position;
- apply to the court in connection with cases of infringement of the economic competition protection legislation;
- participate in drafting of legal acts regulating economic competition development and the state policy in this field, as well as in their presentation pursuant to the prescribed procedure ;
- participate in signing of interstate agreements pertaining to issues falling within its competence;
- cooperate with the state bodies and non-government organizations of foreign states as well as with international organizations;
- develop and implement measures preventing the infringements of the economic competition protection legislation;
- summarize the experience of implementation of the economic competition protection legislation and draft proposals on its improvement;
- ensure publicity of its activity; publish a bulletin;
- carry out public explanatory works to notify the public about the liability stipulated by provisions of this Law;
- implement other activities falling within its competence.
(Article 18 was supplemented and amended by #HO-107-N Law adopted on 22.02.2007)
ARTICLE 19. POWERS OF THE COMMISSION
1. The Commission shall be entitled to:
a) Make decisions with respect to:
a) Make decisions with respect to:
- Possible or factual violations of this Law;
- Studies of product markets;
- Research, inspection, study and (or) monitoring in connection with initiating or conducting administrative cases;
- Boundaries of product markets, existence of dominant position of economic entities on these markets, as well as on implementation of measures conditioned by that;
- Disaggregation (division, separation, alienation of shares or assets) of economic entities abusing their dominant position twice or more within a year;
- Discontinuation of infringements of this Law by economic entities or elimination of their consequences, restoration of the original position, amendment or dissolution of contracts contradicting this Law, singing of contracts with other economic entities;
- Incompliance of legal acts adopted by the state and local government bodies or their officials with the legislation on economic competition protection, providing conclusions on agreements to be signed, state aids as well as concentrations;
- Suspension, liquidation (annulment, ceasing), recognizing void of concentration or state aid;
- Imposition of penalties upon economic entities and their officials, officials of the state and local government bodies for infringement of this Law.
b) Control over implementation (maintenance) of the Commission decisions;
c) Conducting research, inspection, study and (or) monitoring according to the procedure defined by the law in order to disclose the reliability of information presented by economic entities, the actual activity of economic entities, or to exercise control over fulfillment of the Commission decisions;
d) Apply to the court in connection with violations of this Law, including legal acts adopted by the state and local government bodies, with the request to recognize void, fully or partially, the contracts signed by economic entities in violation of this Law, as well as to amend or dissolve such contracts;
e) Apply to the Government of the Republic of Armenia with petition to cease the actions of the state bodies or their officials which conflict this Law;
f) Impose fines, exercise other sanctions stipulated by this Law;
g) Adopt appropriate procedures connected with anticompetitive agreements, dominant positions, concentrations, unfair competition, state aid, as well as determination of product market;
h) Provide explanations with respect to issues relating to the enforcement of the economic competition protection legislation;
i) Exercise other powers envisaged by the legislation.
c) Conducting research, inspection, study and (or) monitoring according to the procedure defined by the law in order to disclose the reliability of information presented by economic entities, the actual activity of economic entities, or to exercise control over fulfillment of the Commission decisions;
d) Apply to the court in connection with violations of this Law, including legal acts adopted by the state and local government bodies, with the request to recognize void, fully or partially, the contracts signed by economic entities in violation of this Law, as well as to amend or dissolve such contracts;
e) Apply to the Government of the Republic of Armenia with petition to cease the actions of the state bodies or their officials which conflict this Law;
f) Impose fines, exercise other sanctions stipulated by this Law;
g) Adopt appropriate procedures connected with anticompetitive agreements, dominant positions, concentrations, unfair competition, state aid, as well as determination of product market;
h) Provide explanations with respect to issues relating to the enforcement of the economic competition protection legislation;
i) Exercise other powers envisaged by the legislation.
1.1.The Commission decision referring disaggregation as stipulated in Clause “a” of Part 1 of this Article shall be subject to execution by economic entities no later than within 6 months;
1.2. If any economic entity fails to submit within the defined timeframe the documents and other information necessary for examination, proceedings, research, inspection, study and (or) monitoring, or otherwise hampers their process, or necessary documents and other information are lacking, the Commission shall be entitled to make decisions based on the documents and other information at its disposal. Adoption of decisions as stipulated by this part shall not dispense economic entities from obligation of submitting such documents and other information or from the liability for the failure to submit them.
2. The Commission shall be independent of other state bodies in performing the objectives and functions defined by this Law.
(Article 19 was amended and supplemented by #HO-398-N Law adopted on 28.06.2007, #HO-91-N Law adopted on 04.05.2005 and #HO-107-N Law adopted on 22.02.2007)
ARTICLE 20. COMPOSITION OF THE COMMISSION AND VALIDITY TERM OF ITS POWERS
1. The Commission shall be composed of seven members: the chair, deputy and five members.
2. The President of the Republic of Armenia shall appoint the Commissioners. The Commissioners, except the first composition, shall be appointed for a 5-year period.
3. Terms of powers of the first Commissioners shall be defined as follows:
2. The President of the Republic of Armenia shall appoint the Commissioners. The Commissioners, except the first composition, shall be appointed for a 5-year period.
3. Terms of powers of the first Commissioners shall be defined as follows:
one member - one year;
one member - two years;
three members - three years;
Commission Deputy Chair - four years;
Commission Chair - five years.
4. Commissioners may not be engaged in entrepreneurial activity, be a member of any representative body, hold any other state post nor do a paid job, except for scientific, creative and pedagogical activities.
5. Commissioners shall not be entitled, whether directly or indirectly, to receive gifts or other tangible profits from the product market participants.
6. Persons may not be appointed as Commissioners if they:
a) do not have higher education;
b) are not citizens of the Republic of Armenia;
c) are recognized incompetent or partially competent by a valid court decision;
d) have been convicted for committing an intentional crime by a valid court decision;
e) have been deprived of the right to hold a certain state post according to the procedure defined by the Law.
5. Commissioners shall not be entitled, whether directly or indirectly, to receive gifts or other tangible profits from the product market participants.
6. Persons may not be appointed as Commissioners if they:
a) do not have higher education;
b) are not citizens of the Republic of Armenia;
c) are recognized incompetent or partially competent by a valid court decision;
d) have been convicted for committing an intentional crime by a valid court decision;
e) have been deprived of the right to hold a certain state post according to the procedure defined by the Law.
ARTICLE 21. TERMINATION OF POWERS OF COMMISSIONERS
1. Powers of a Commissioner may be terminated by the President of the Republic of Armenia on the basis of the Commissioner’s application in cases specified in Clauses “c”, “d” and “e” of Part 6 of Article 20, as well as upon suspension of his/her citizenship of the Republic of Armenia, taking another job, neglecting the official duties, or failure to perform the official duties for more than 6 months due to disease or for any other reason.
2. In case of termination of a Commissioner’s powers, the President of the Republic of Armenia shall within ten days appoint a Commissioner for a 5-year period.
3. A Commissioner may be reappointed to the same position after expiry of the term of his/her powers.
2. In case of termination of a Commissioner’s powers, the President of the Republic of Armenia shall within ten days appoint a Commissioner for a 5-year period.
3. A Commissioner may be reappointed to the same position after expiry of the term of his/her powers.
(Article 21 was amended by #HO-107-N Law adopted on 22.02.2007)
ARTICLE 22. THE COMMISSION STAFF
The Commission shall organize its activities through its Staff, the statue of which shall be approved by the Commission.
(Article 22 was amended by #HO-107-N Law adopted on 22.02.2007)
ARTICLE 23. THE COMMISSION CHAIR
1. The Commission Chair shall:
a) Represent the Commission in the Republic of Armenia, other states and international organizations within his/her authority;
b) Manage and coordinate the normal functioning of the Commission, distribute official duties among the Commissioners;
c) Participate in the government sessions with an advisory vote and provide written comments on issues discussed during the sessions, which shall be enclosed with the session minute;
d) Call and preside at the Commission meetings, approve agendas of sessions;
e) Organize implementation of decisions adopted by the Commission;
f) Sign the Commission decisions and the session minutes;
g) Approve the list of the Commission staff, act as employer’s representative for Commissioners and employees appointed by him/her, recruit and dismiss the Commission staff employees within the frame of his/her competence, act in the court on behalf of the Commission and issue powers of attorney to act in the court on behalf of the Commission, exercise other powers reserved by this Law, other legal acts and the Commission Statute.
2. In case of absence of the Chair or impossibility to perform his/her official duties the Commission Chair shall be replaced by the Deputy Chair, and in case of absence of the latter or impossibility to perform the official duties, by the eldest Commissioner.
a) Represent the Commission in the Republic of Armenia, other states and international organizations within his/her authority;
b) Manage and coordinate the normal functioning of the Commission, distribute official duties among the Commissioners;
c) Participate in the government sessions with an advisory vote and provide written comments on issues discussed during the sessions, which shall be enclosed with the session minute;
d) Call and preside at the Commission meetings, approve agendas of sessions;
e) Organize implementation of decisions adopted by the Commission;
f) Sign the Commission decisions and the session minutes;
g) Approve the list of the Commission staff, act as employer’s representative for Commissioners and employees appointed by him/her, recruit and dismiss the Commission staff employees within the frame of his/her competence, act in the court on behalf of the Commission and issue powers of attorney to act in the court on behalf of the Commission, exercise other powers reserved by this Law, other legal acts and the Commission Statute.
2. In case of absence of the Chair or impossibility to perform his/her official duties the Commission Chair shall be replaced by the Deputy Chair, and in case of absence of the latter or impossibility to perform the official duties, by the eldest Commissioner.
(Article 23 was amended by #HO-107-N Law adopted on 22.02.2007)
ARTICLE 24. CONFLICT OF INTERESTS
1. Any Commissioner holding personal interest in any issue subject to discussion at the Commission session shall be obliged to disclose to other members the fact and nature of his/her interest, which should be recorded in the session minutes. After this notification, the stated Commissioner shall:
a) Renounce his/her participation in the session for discussion of the issue in question;
b) Not be regarded for ensuring the eligibility of the given session.
2. The person whose issue is the subject matter of discussion may challenge the Commissioner if the latter holds personal interest in the discussed issue.
a) Renounce his/her participation in the session for discussion of the issue in question;
b) Not be regarded for ensuring the eligibility of the given session.
2. The person whose issue is the subject matter of discussion may challenge the Commissioner if the latter holds personal interest in the discussed issue.
ARTICLE 25. DECLARATION OF COMMISSIONERS’ INCOMES
Commissioners shall submit their income declarations according to the procedure defined in the Law.
(Article 25 was amended by #HO-91-N Law adopted on 04.05.2005)
ARTICLE 26. THE COMMISSION STATUTE
1. The Commission Statute shall define the procedure of the Commission activity.
2. The Commission shall approve the Commission Statute.
2. The Commission shall approve the Commission Statute.
(Article 26 was amended by #HO-107-N Law adopted on 22.02.2007)
ARTICLE 27. ANNUAL PROGRAM AND REPORT
The Commission shall:
1. Each year, by October 1, publish in the National Assembly its annual program for the coming year, which shall contain brief information on:
a) Analysis of economic competition environment and detection of existing key issues;
b) Measures and the schedule of implementation of economic competition protection;
c) Economic competition regulatory mechanisms;
d) Other necessary provisions defined by the Commission for the implementation of the objectives and functions set forth in this Law.
2. Each year, by May 1, the Commission shall publish a report on the previous year’s activity which shall include:
1) brief information on the Commission activities;
2) product markets analysis;
3) measures undertaken towards regulation and supervision of economic competition;
4) financial report of its activity.
1. Each year, by October 1, publish in the National Assembly its annual program for the coming year, which shall contain brief information on:
a) Analysis of economic competition environment and detection of existing key issues;
b) Measures and the schedule of implementation of economic competition protection;
c) Economic competition regulatory mechanisms;
d) Other necessary provisions defined by the Commission for the implementation of the objectives and functions set forth in this Law.
2. Each year, by May 1, the Commission shall publish a report on the previous year’s activity which shall include:
1) brief information on the Commission activities;
2) product markets analysis;
3) measures undertaken towards regulation and supervision of economic competition;
4) financial report of its activity.
(Article 27 was amended by #HO-436-N Law adopted on 23.10.2002)
ARTICLE 28. DUTIES OF ECONOMIC ENTITIES, STATE ADMINISTRATION AND LOCAL GOVERNMENT BODIES IN PROVIDING DATA TO THE COMMISSION
1. To perform the functions stipulated in this Law, the state administration and local government bodies, as well as their officials shall upon the Commission’s request provide documents and other data.
2. In connection with conducting proceeding, research, inspection, study (including a study of a product market) and (or) monitoring, or with other issues related to economic entities, based on the decision adopted by the Commission the economic entities shall be obliged to submit documents and other information defined by the decision.
3. Economic entities registered in the Centralized Register of Economic Entities having Dominant Position shall be obliged to submit to the Commission, according to the procedure defined by the latter and at 6-month intervals, information regarding the volumes of products sold (acquired) by them on the given product market, cost structure and price flows (in case of price changes – with appropriate justifications) as of July 1st and January 1st of the coming year - by August 15th of the current year and February 15th of the coming year, respectively.
2. In connection with conducting proceeding, research, inspection, study (including a study of a product market) and (or) monitoring, or with other issues related to economic entities, based on the decision adopted by the Commission the economic entities shall be obliged to submit documents and other information defined by the decision.
3. Economic entities registered in the Centralized Register of Economic Entities having Dominant Position shall be obliged to submit to the Commission, according to the procedure defined by the latter and at 6-month intervals, information regarding the volumes of products sold (acquired) by them on the given product market, cost structure and price flows (in case of price changes – with appropriate justifications) as of July 1st and January 1st of the coming year - by August 15th of the current year and February 15th of the coming year, respectively.
(Article 28 was amended and supplemented by #HO-29-N Law adopted on 25.12.2003, #HO-91-N Law adopted on 04.05.2005 and #HO-107-N Law adopted on 22.02.2007)
ARTICLE 29. ANNUAL EXPENSES OF THE COMMISSION
1. Financing of the Commission shall be carried out on the account of the state budget. The Commission Chair, following the Law on Budget System, shall submit the Commission’s budget of expenses within the defined timeframe to the Government of the Republic of Armenia for inclusion in the draft state budget.
The budget request shall be included in the draft state budget without any changes if accepted by the Government of the Republic of Armenia, or with respective changes in case of objections by the latter, and shall be presented to the National Assembly together with the state budget.
2. The Commission’s budget of expenses shall provide the possibility for proper implementation of objectives and functions as defined by this Law, including ensuring the representation in international organizations, as well as paying salaries to the Commission staff.
The budget request shall be included in the draft state budget without any changes if accepted by the Government of the Republic of Armenia, or with respective changes in case of objections by the latter, and shall be presented to the National Assembly together with the state budget.
2. The Commission’s budget of expenses shall provide the possibility for proper implementation of objectives and functions as defined by this Law, including ensuring the representation in international organizations, as well as paying salaries to the Commission staff.
(Article 29 was amended by #HO-107-N Law adopted on 22.02.2007)
ARTICLE 30. PROCEDURE FOR ORGANIZATION OF ACTIVITIES
1. The Commission implements its activities through sessions.
2. The Commission session shall be eligible, if at least five Commissioners participate in it.
3. The Commission shall hear issues at open-door sessions, except for cases when such discussion may cause damage to interested parties.
4. The Commission sessions shall be recorded. The session minutes shall contain brief information about the venue, time, participants, agenda, speeches and voting results.
5. Sessions shall be called at a certain periodicity or upon the request of any of Commissioners, as appropriate.
6. The Commission shall adopt a decision as a result of discussion.
2. The Commission session shall be eligible, if at least five Commissioners participate in it.
3. The Commission shall hear issues at open-door sessions, except for cases when such discussion may cause damage to interested parties.
4. The Commission sessions shall be recorded. The session minutes shall contain brief information about the venue, time, participants, agenda, speeches and voting results.
5. Sessions shall be called at a certain periodicity or upon the request of any of Commissioners, as appropriate.
6. The Commission shall adopt a decision as a result of discussion.
In case of discussing procedural issues or failure to adopt a decision to the point (including convocation of a closed-door session, withdrawal of an issue from discussion, adjournment of discussion, inclusion of additional issue in the agenda, giving instruction to the staff, etc.), the Commission shall adopt a verbal decision (for record) through voting, of which a record shall be made in the minutes.
Commission decisions shall be adopted at the Commission sessions based on the majority votes of the Commissioners participating in the session. In case of equal votes, the vote of the Commission Chair or the person replacing him/her shall be decisive.
Abstention from voting or transfer of a vote to other Commissioner is prohibited.
7. Following the adoption of an administrative act, a copy thereof shall be delivered to the addressee within 5 days’ period.
8. The administrative act adopted by the Commission shall take effect on the day following the date of its delivery to the addressee, unless a later date is specified in the act. In case the administrative act has more than one addressee, the relevant part of the administrative act shall become effective on the day following the date of delivering its copy to the respective addressee, unless a later date is specified in the act.
Other individual legal acts adopted by the Commission shall take effect since the moment of their adoption, unless a later date is specified therein
9. The Commission decision may be appealed in administrative order within 10 days’ period following its effective date. The Commission decision may be appealed in the court: in case of disagreement with the results of discussion of administrative appeal - within one month period from the moment of adoption of a decision on appeal, and in case of not filing administrative appeal - within one month following the effective date of the Commission decision.
10. Maximum timeframe for the Commission to conduct an administrative proceeding is 90 days.
Commission decisions shall be adopted at the Commission sessions based on the majority votes of the Commissioners participating in the session. In case of equal votes, the vote of the Commission Chair or the person replacing him/her shall be decisive.
Abstention from voting or transfer of a vote to other Commissioner is prohibited.
7. Following the adoption of an administrative act, a copy thereof shall be delivered to the addressee within 5 days’ period.
8. The administrative act adopted by the Commission shall take effect on the day following the date of its delivery to the addressee, unless a later date is specified in the act. In case the administrative act has more than one addressee, the relevant part of the administrative act shall become effective on the day following the date of delivering its copy to the respective addressee, unless a later date is specified in the act.
Other individual legal acts adopted by the Commission shall take effect since the moment of their adoption, unless a later date is specified therein
9. The Commission decision may be appealed in administrative order within 10 days’ period following its effective date. The Commission decision may be appealed in the court: in case of disagreement with the results of discussion of administrative appeal - within one month period from the moment of adoption of a decision on appeal, and in case of not filing administrative appeal - within one month following the effective date of the Commission decision.
10. Maximum timeframe for the Commission to conduct an administrative proceeding is 90 days.
(Article 30 was amended and supplemented by # HO-91-N Law adopted on 04.05.2005 and #HO-107-N Law adopted on 22.02.2007)
ARTICLE 31. PROCEDURE FOR IMPOSITION OF SANCTIONS BY THE COMMISSION
The Commission is entitled to impose sanctions stipulated by the Law for violation of this Law, including a warning and an instruction to correct and (or) exclude violations in future, and (or) to impose fine at the size stipulated in the Law and (or) to cancel or annul concentration.
(Article 31 was amended by #HO-107-N Law adopted on 22.02.2007)
ARTICLE 32. THE ORDER
(Article 32 was recognized void by #HO-107-N Law adopted on 22.02.2007)
ARTICLE 33. THE COMMISSION DUTIES IN KEEPING COMMERCIAL, BANKING OR OFFICIAL SECRETS
1. Data constituting commercial, banking or official secret, which have been received in the course of exercising the powers defined by this Law, shall be protected by the Commission according to the procedure stipulated by the Law.
2. The Commission staff and employees shall not be entitled to publish or otherwise disseminate, as well as to use for their personal interests the confidential and official information received during the performance of their official duties.
3. In case of publication of data containing commercial, banking or official secret, the damage caused to an economic entity shall be subject to compensation out of the state budget according to the procedure defined by the legislation.
2. The Commission staff and employees shall not be entitled to publish or otherwise disseminate, as well as to use for their personal interests the confidential and official information received during the performance of their official duties.
3. In case of publication of data containing commercial, banking or official secret, the damage caused to an economic entity shall be subject to compensation out of the state budget according to the procedure defined by the legislation.
ARTICLE 34. GROUNDS FOR DISCUSSION OF VIOLATIONS OF THIS LAW BY THE COMMISSION
The Commission is entitled to make decisions based on researches conducted by it, applications and information of the state administration and local government bodies, economic entities and consumers, announcements in the mass media and other documents under its disposal, which prove the violation of this Law.
The Commission is entitled to make decisions based on researches conducted by it, applications and information of the state administration and local government bodies, economic entities and consumers, announcements in the mass media and other documents under its disposal, which prove the violation of this Law.
ARTICLE 35. ORDER OF IMPLEMENTATION OF THE COMMISSION DECISION
1. The Commission decision shall be subject to execution by economic entities, the state administration and local government bodies and their officials within the timeframe indicated therein.
2. The Commission shall be entitled to file a claim to the court in case of failure to execute its decision.
3. Filing of a claim shall not terminate the enforcement (enactment) of the Commission decision.
2. The Commission shall be entitled to file a claim to the court in case of failure to execute its decision.
3. Filing of a claim shall not terminate the enforcement (enactment) of the Commission decision.
(Article 35 was amended by #HO-107-N Law adopted on 22.02.2007)
