Overview of Kazakhstani New Anti-monopoly Regulation

Abstract

The main statute governing competition in Kazakhstan is the Entrepreneurial Code, first adopted in October 2015. Section 4 of the Code in particular is aimed at the protection of competition in Kazakhstan. It primarily deals with anticompetitive agreements and conduct, provides for a control system over economic concentrations, and regulates anti-monopoly investigations. The anti-monopoly provisions of the Code are enforced by the Committee on the Regulation of Natural Monopolies and Protection of Competition within the Ministry of the National Economy of the Republic of Kazakhstan and its regional departments located in each Kazakhstani region and its two main cities (Almaty and Astana). The Committee has a broad range of powers and duties ranging from investigating anticompetitive conduct and imposing administrative sanctions to regulating natural monopolies. The Code generally prohibits horizontal and vertical agreements and concerted actions that lead (or can lead) to restriction of competition, albeit it also provides certain exemptions. The Code includes an exhaustive list of conduct which is prohibited for dominant entities. The Anti-monopoly Committee exercises control over economic concentrations by overseeing mergers, consolidations, acquisitions and certain other transactions.