Competition law reaches an end
27 March, 2014
Competition law reaches an end

The competition law of Georgia, which was suspended for over a year already since January 2013, is expected to be approved by the end of April. The antitrust body is put in a stand-by regime until then and will start operating at last. Thus, four months ahead of the signing of the associated membership agreement with the EU this August, Georgia will fulfill its obligation to the EU to have a competition law and a competition regulatory body.Whether or not this

competition law and regulatory body is another tick on Georgia’s list of obligations to the European community is still unclear because details of the bill amending the old antitrust law are not disclosed completely as of yet. The draft law is already completed, however, and slated for parliamentary discussions.


What is known is that, according to the draft, a Competition Agency will be set up as an independent body in which the government cannot interfere unlike the already existing Agency for Competition and State Procurement which was created early in 2012 by the previous government. The Agency will be mandated to research the competition climate of the country at its own discretion and will be accountable to the Prime Minister and to Parliament. The Prime Minister will assign the head of the Agency for a five-year term after Parliament approves the candidate.
That Georgia needs the competition law in order to make the heavily monopolized market free of monopolies is not a secret. For many years analysts have been pointing out problems concerning monopolies and cartel agreements in many sectors - such as pharmaceutical and fuel markets, communications, insurance, the banking sector - but to no avail.
According to Irakli Lekvinadze, an economic analyst majoring in competition law, there were two possibilities. Either there would be a competition law and declared political will to have a trusts-free market like in 1992-2004, before the Rose Revolution, which was never executed. Or there was the super-liberal approach of the Rose Revolution authorities, denying the needs for anti-trust law and leaving the market at its own discretion. The result in both cases was similar: a carte blanche for monopolists, high prices and a violation of consumer rights.
Based on the past experience of the country sector, pundits say the major point now is whether or not there will be a political will to execute the competition law rather than simply have an ineffective one like before.
The Rose Revolution power, which undertook a liberal economic course in 2005, revoked the antitrust law and the service accordingly. When Georgia started negotiating the conclusion of a free trade agreement with the EU in 2008, the government had to restore the antitrust regulation in 2012 because it was one of the four key preconditions to start negotiations on the Deep and Comprehensive Free Trade Agreement (DCFTA) with the EU. However, the forcefully accepted law was ineffective and ensured plenty of loopholes for monopolists.
As soon as the new authorities took office in the fall of 2012, the antitrust law was reformed and was expected to enter into effect in the spring of 2013. However, the issue was held up to this spring. According to the new draft law, a market player with more than 40% of market share is considered to be a monopolist. Lekvinadze believes this limit should be elaborated clearly to prevent harm to business. According to him, the law lacks a consultation and decision-making council, staffed by balanced personnel and representing both governmental and non-governmental sectors as well as scientists and business associations.
“However, no matter how well-elaborated and well-worded the competition law is or how effective its methodology will be, the major point is that the political will have to be focused on market competition and not on informal lobbying with state officials. The researches show that the market competition is deteriorating under incorrect political and economic decisions. Therefore the key function of the power should be the systemized neutralization of those decisions,” Lekvinadze said. 

 

Print
Other Stories
Georgian citizens are granted the right to work in France
The French Embassy in Georgia made remarks on granting Georgian citizens the right to work in France
The New York Times: Bitcoin declines but Georgia still bet on it
The New York Times has recently published an article about reasons, challenges and causes of generating Bitcoin in the former Soviet country Georgia.
EU to allocate € 13 billion for Eastern Partnership countries, including Georgia
The European Union together with the World Bank plans to allocate investment worth € 13 billion for infrastructure projects in the Eastern Partnership countries.
Anaklia Port and its importance for Georgia
In 2016, Anaklia Development Consortium was authorized to launch the construction of Anaklia Port.
Cryptocurrency mining threatens electrical network in Abkhazia
In the breakaway region of Akbhazia rampant cryptocurrency mining is threatening the shaky electrical network, reports an article of the news portal EuroNet.
Caucasus Wine University to be opened in Gurjaani
In the Kakheti region a new viticulture campus of the Caucasus University is in the process of planning.
Photos describing life of the poorest in Georgia
Fight with poverty should be among top priorities of every government in every country.
Training farmers to rescue the organic hazelnut production in Georgia
Even drizzling rain and unpleasant gusts of wind can’t prevent the farmers from coming and participating in the agricultural training.
Bleak times for organic farmers in Georgia – but there is hope
Organic hazelnut production is a delicate plant in Georgia that has emerged just a couple of years ago. Various pests, among them the Asian stink bug Parosana, trouble hazelnut farmers and menace their livelihood – even before their businesses could really take off.
Hybrid car imports are going through the roof in Georgia
Thanks to their fuel economy, the popularity of hybrid cars is increasing in Georgia, where fuel affordability is low and prices for fuel are unstable.
The New Year offer from MAQRO Construction - Apartments with unbelievable discounts and the parking spaces for FREE!
Location, green yard, spaces for various needs, experience of the construction company and parking space are the main important criteria for potential buyers of apartments.
Interview with the co-founder of Kiwi Vegan Café – the first vegan place in Tbilisi
Behind the Kiwi Vegan Café stands a group of activists who wants to raise Georgian’s awareness for animal rights and welfare.
Biblusi opens first shop for tourists - Georgian
The largest book shop in Georgia Biblusi opens the first shop specially designated to the needs and interests of tourists and named it Georgian.
Georgia improves by five ranks in the Prosperity Index
In the overall Prosperity Index rankings, Georgia has climbed by 5 positions from 85 to 80 when compared to last year. As such, Georgia is the best performing country in the CIS zone.
The future is bright for electric cars in Georgia
The numerous hybrid cars in the streets of Tbilisi cannot be overlooked. Entrepreneur Sulkhan Gvalia calls them “pagers”, referring to the predecessor of mobile phones.
Georgia’s fight against the big tiny enemy – Asian Parosana
It’s a tiny creature, but the harm it did to the Georgian agriculture sector was and still is immense.
New cable route: from Kobi to Gudauri in 15 minutes
On the 15th of December, cable transport is scheduled to be opened connecting Kobi and Gudauri.
Tourist boom in Gudauri – majority of hotels are booked by foreigners
Gudauri is among the most popular winter resorts in Georgia.
Medical tourism increases in Georgia
In the last 9 months, Georgia was visited by 19 500 foreigners for medical and recovery purposes.
Doing business in Georgia has become easier than in America
According to the Doing Business 2019 report published by the World Bank, Georgia ranked 6th among 190 countries in terms of simplicity of doing business. This was an improvement over two ranks compared to last year.
Problems that foreigners frequently face in Georgia
The importance of Georgia as a tourism hub is growing year after year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
PHOTO OF THE DAY
GEL Exchange Rate
Convertor
19.02.2019
20.02.2019
USD
1
USD
2.6404
2.6498
EUR
1
EUR
2.9908
2.9977
GBP
1
GBP
3.4130
3.4246
RUB
100
RUB
3.9898
4.0023
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
USD
1
USD
2.6498
EUR
1
EUR
2.9977
GBP
1
GBP
3.4246
RUB
100
RUB
4.0023
February 2019
Mon Tue Wed Thu Fri Sat Sun
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28