Anti-trust law under spotlight
23 June, 2011

A non-governmental watchdog of Young Financiers and Businessmen calls on Georgian government to fulfill the EU requirement on restoring of effective anti-trust body as soon as possible.  

Association of Young Financiers and Businessmen (AYFB) worry that delay in activation of comprehensive anti-trust body in Georgia in compliance with the EU requirements [which is obligatory for opening EU market door to Georgia within the framework of Deep and Comprehensive Free Trade Agreement (DCFTA)] draws Georgia away from strategic track leading to

full EU family membership.

Young financiers think government makes an inexcusable mistake by postponing approval of the law that should insure restoration of anti-trust body [revoked in 2005 thanks to liberal economic reforms of Rose govenrmnet] into independent and effective structure. No DCFTA talks are supposed to start unless Georgia  fulfills all requirements [focused on harmonization of regulatory frameworks with the EU one] posed by the EU as preconditions for starting this talk  in four key areas including Technical Barriers to Trade (TBTs), Sanitary and Phytosanitary (SPS) Measures, Intellectual Property Rights (IPR), and Competition.

In the field of Competition Policy government had to restore anti-trust structure through giving independence to the Agency for Free Trade and Competition (AFTC) together with its full investigative powers, both in the area of antitrust and state aid. Government implemented only formal sides of the recommendation: the AFTC was transformed into an independent public law entity a year ago but its head is appointed by Prime Minister. But this legislative change does not enhance the administrative and financial independence of the Agency in fact. According to EU recommendations,   adoption and rapid enforcement of a general competition law based on antitrust regulation is crucial that is still delayed for uncertain period. The law was supposed to be approved in June of 2010, then in November, then in April of 2011… but as a matter of fact the draft project is not submitted to the parliament as yet.

Lack of effective anti-trust law encourages creation of latent monopolies  and clans connected with the authority grab all valuable businesses trusts, enjoy carte blanche and uncontrolled price-making that pumps national wealth to off-shore zones, young financiers said on June 71, 2011.

The recent price hike on foods specifically on meat largely debated at parliamentary sessions this week is an evident sample to trust activity. Under food security pre-text government empowered one slaughter-company to provide Tbilisi with meat that jacked prices up over-night. Merab Janiashvili, President of AYFB, believes the food-security remedies could not affect prices and the price-hike is caused by creation of a monopolist company at the market as well as meat importers far-going plans to supplant local meat by cheaper import.

“Georgian Lottery Company that enjoys an exclusive right on lottery game across the country for some reasons as well as recent tender held on Tbilisi inbound micro-bus lines and upcoming similar tender for Rustavi micro-bus line exemplify how the state encourages anti-trusts,” Janiahsvili said. “It may take us far to count monopolies as far as there is no trust-free field in the country where price-making is based on fair competition and not on cartel agreements and appetite of trusts.”

Young financiers hail Parliament to address implementation of EU requirements on anti-trust regulation till the process becomes irretrievable and blocks DCFTA for long time. Government resists this requirement that counters with the declared pro-EU course. Some non-governmental organizations incorporated in collation European for Georgia openly agitate anti-European course assuring that restoration of anti-trust service and closer ties with the EU may restrict economic freedom of Georgia. AYFB disagree. Numbers of developed countries that have strong anti-trust regulation are much ahead Georgia in economic freedom index, AYFB experts say.

“Some people believe anti-trust sets restrictions to private sector that is not correct approach. The role of anti-trust is to insure business from the state interference for the state is the power that makes certain entrepreneurs in privileged position that encourages market monopolization and inadequate price-making,” they say.

And indifferent policy of Georgian authority toward anti-trust law makes AYFB to think government lobbies latent monopolists.

Print
Other Stories
Inovative and reliable online shop in Georgia - Momitane.ge
Status of Georgia as a business and tourism interesting country is growing from year to 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.
Georgia second among the fastest growing tourist destinations in Europe
Georgia is among the fastest growing tourist destinations in Europe. The data is published by the UN World Tourism Organization.
Bitmain launches world digital mining summit in Tbilisi, Georgia
Bitmain CEO Jihan Wu and Roger Ver, CEO of Bitcoin.com Head Speaker List featuring Circle, DEX.top and Genesis Mining when Digital Mining Leaders Convene In Tbilisi on September 21-23
GAZELLE FINANCE GEORGIA AND TBC BANK HELP THE WESTERN REGIONAL CENTER OF MODERN MEDICAL TECHNOLOGIES EXPAND ACCESS TO QUALITY HEALTHCARE SERVICES IN KUTAISI, GEORGIA
TBC Bank and Gazelle Finance have teamed-up to support Medical City, a leading healthcare provider in the western region of Georgia to launch the Western Regional Center Of Modern Medical Technologies.
Equiavlent to buried treasure – resources that are underused in Georgia
For 2018 the IMF Commission has forecast an annual economic growth for the Georgian economy of about 5,5%.
Does the quality of Georgian wine increase and how the export affects it
If we look at the data collected about modern Georgian wine, we will find out that the Georgian wines produced between 2015-2017 are much better in terms of their quality and Oenologic features rather than the wines produced between 2009-2011.
Japan simplifies the visa requirements for Georgian citizens
Diplomatic and economic relations between Georgia and Japan are now moving to a new phase. Recently Japan has decided to simplify the visa requirements for Georgian citizens.
M&S (Marks and Spencer) and H&M collections to be produced in Georgia
Garments manufacturer MGMTEX will start production of the M&S and H&M trendy collections from this September.
The World Digital Mining Summit to be held in Georgia
The summit is scheduled to take place between 21st-23rd September in the Hualing Hotel, Tbilisi, Georgia.
Galt and Taggart - Tourism Boom Continues in Georgia
Tourism has become one of the key drivers for the Georgian economy. Galt and Taggart has recently published research about the Georgian tourism sector in the first half of 2018.
"The worst dream for Putin is that Russians want to live in Georgia"
This year, visitors to the Adjara region would notice that there is a boom in construction in and around Batumi.
Underground gas storage facility to be built in Georgia
KfW, a German government-owned development bank signed a EUR 150 million promotional loan with the state-owned Georgian Oil and Gas Corporation (GOGC) for the construction of the first underground gas storage facility in Georgia.
New gambling rules for Georgia
Georgian lawmakers are preparing a new draft law relating to online-casinos and gambling that will seek to curb gambling addiction in Georgia.
How expensive is it to visit Georgia?
The Georgian Lari (GEL) is the official currency of Georgia and is the only legal means of payment in the entire territory of Georgia.
Trade with the EU and the Commonwealth of Independent States (CIS) has grown significantly
Trade with the EU and the CIS has grown by 26% and 33.5 % respectively, says GeoStat, the Georgian National Statistics Office.
The unemployment rate decreases in Georgia
The unemployment rate decreased in Georgia by 1,9% and amounted to 12.1% in the 2nd quarter of 2018 compared with the previous quarter,
Memorandum of Understanding to be signed between Georgia and Malaysia
According to the Georgian Ambassador to Malaysia Nikoloz Apkhazava, Georgia plans to sign a Memorandum of Understanding (MoU) with Malaysia.
“Blauenstein Georgia” due to expand in Georgia
“Blauenstein Georgia” is planning to open more shops in Georgia. It is an agriculture company that sells meat products, meat and convenience food.
The amount of Direct Foreign Investment rises in Georgia
According to the information of the National Statistics Office of Georgia, the amount of direct foreign investment in Georgia has risen
It’s going to get  harder for foreigners to get residence permit in Georgia
It’s going to get harder for foreigners to get permit of residence in Georgia.
Mziuri Park in Tbilisi to be renovated soon
It was the dream of prominent Georgian writer Nodar Dumbadze that when the original Mziuri park was constructed and opened in 1892 that it should be a park for children,
PHOTO OF THE DAY
Exchange Rates
GEL Exchange Rate
Convertor
12.11.2018
13.11.2018
USD
1
USD
2.7146
2.7166
EUR
1
EUR
3.0800
3.0602
GBP
1
GBP
3.5325
3.4900
RUB
100
RUB
4.0430
4.0131
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
2.7166
EUR
1
EUR
3.0602
GBP
1
GBP
3.4900
RUB
100
RUB
4.0131
November 2018
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 29 30