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RA Constitution
RA Law on Protection of Economic Competition
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Regulation on Criminal and administrative procedure for appealing against actions (inaction) of officials
Drafts of Normative Legal Acts
SCPEC RA was established in 2001

6-th UN conference on Competition Policy

Armenia. Peer Review

ARMENIA IS A MEMBER OF ICAP

ICAP XXXXIV ORDINARY SESSION, 13-15 APRIL 2016,YEREVAN

ARMENIA IS A MEMBER OF ICN

ICN 16th Annual Conference

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Frequently Asked Questions About Law
When was the Commission for the Protection of Economic Competition of the Republic of Armenia established?
What can serve as a subject of undisclosed information?
What is considered to be disclosure of undisclosed information?
Which are the contradicting means of undisclosed information?
How is a damage on reputation and business of an economic entity expressed?
What is considered to be a defilement of an economic entity its actions and when does it arise?
Which are the actions of unfair competition?
What are the required data to be filled in the declaration form on concentrarion?
What is considered to be concentration?
How is the abuse of dominant position expressed?
How is the dominating position of a managing subject on the given commodity market defined?
Do officials account for violation of the Law?
Which are the scopes of the Commission authoritiesf?
Which are the main legal bases of the legislation on competition?
Which body realizes the protection of economic competition?
What is the procedure for organization of the Commission activities?
What means of liability can be applied by the Commission?
Are the losses of economic entities or other bodies compensated?
How are the anticompetitive agreements expressed?
What is considered to be an anticompetitive agreement and what is not?
When is concentration considered to be a subject of declaration?
How is the state regulation of concentration carried out?
What is considered to be an unfair competition?
What is “confusion” and how is it developed?
How is the “misleading of society” expressed?
What are the cases of considering whether the information is undisclosed or not?
What is considered to be usage of undisclosed information?
When was the Commission for the Protection of Economic Competition of the Republic of Armenia established?
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What can serve as a subject of undisclosed information?
  • The subject matter of undisclosed information may be production methods, chemical formulas, drawings, test samples, product sale and distribution methods, contract forms, business plans, details of contract prices, professional activity fields (profiles) of consumers, advertising strategy, lists of suppliers or clients, computer software, databases, etc.
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What is considered to be disclosure of undisclosed information?
  • Disclosure of undisclosed information is considered to be the publication of the latter, as well as passing it to another person who can gain material or other benefit from its use.
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Which are the contradicting means of undisclosed information?
  • The following ways of acquisition, use and disclosure of undisclosed information shall be considered as violation of business practices [commercial usage], particularly:
    - industrial or business espionage or compulsion of such,
    - infringement, termination or compulsion of a contract dealing with undisclosed information,
    - infringement of confidentiality or compulsion of such,
    - acquisition of un-disclosed information by a third person who was aware or might have been aware that such acquisition should imply carrying out of activities set out in the abovementioned paragraphs.
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How is a damage on reputation and business of an economic entity expressed?
  • Any business activity or conduct which, irrespective of creating confusion, cause or may cause damage to any economic entity's reputation or non-tangible assets, shall be considered as an act of unfair competition.
  • Acts which damage the reputation or goodwill (intangible asset) of an economic entity are described in Article 15 of the RA Law "On Protection of Economic Competition".
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What is considered to be a defilement of an economic entity its actions and when does it arise?
  • Any false or ungrounded  declaration concerning entrepreneurship that defiles or may defile an economic entity,, its activities or offered commodity is considered to be an unfair competition.  
  • The defilement can develop during arrangements for advertisement or distribution, especially concerning:
    - production process,
    - fitness for specific purposes,
    - quality, quantity or other characteristics of the product,
    - conditions of offers,
    - prices or methods of calculation.
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Which are the actions of unfair competition?
  • Confusion with respect to an economic entity and its activities,
  • Defilement of an economic entity or its activities,
  • Misleading of society,
  • Breathe on reputation and image of an economic entityt,
  • Unfair  competition regarding undisclosed information.
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What are the required data to be filled in the declaration form on concentrarion?
  • The declaration on concentration shall specify the type, objective of concentration, and the following information about each participant:
    - name (title), place of residence (registered office) and place of activity;
    - financial statements of annual activities as of the end of the year preceding the declaration and, in case of the requirement for conducting audit of financial statements, also the audit opinion thereon. If any of the concentration participants has started its activity in the given year, its financial statements and audit opinions thereon shall be submitted as of the end of the month preceding the declaration;
    - volumes of products, according to their assortment, sold during the preceding year, as well as the description of production capacities;
    - other documents and information prescribed by the decision of the Commission on approving the procedure for declaration of concentration and the form of declaration
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What is considered to be concentration?
  • The following is deemed as concentration of economic entities:
    a) amalgamation or merger of economic entities;
    b) acquisition of assets of one economic entity by another if their value per se or together with the value of assets already possessed by the acquirer constitutes 20% or more of assets or the charter capital (capital stock) of such economic entity;
    c) any incorporation of economic entities due to which one economic entity may, directly or indirectly, influence the decision-making or competitiveness of another economic entity.
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How is the abuse of dominant position expressed?
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How is the dominating position of a managing subject on the given commodity market defined?
  • An economic entity shall be considered as having dominant position on product market if:
    - it has market power on the given product market, in particular, does nor encounter any significant competition as a seller or acquirer, and (or), based on its financial standing or other qualities, has the opportunity to have decisive influence on the general product turnover in the given product market and (or) oust other economic entity out from the given product market and (or) impede the entry into the given product market; or
    - as a seller or acquirer it captures at least one third of the given market in terms of sale or acquisition volumes; or
    - each of the two economic entities having the largest sale or acquisition volumes on a product market shall be considered as having dominant position on the given product market, if they jointly capture, as sellers or acquirers, at least the half of the given market in terms of sale or acquisition volumes; or
    - each of the three economic entities having the largest sale or acquisition volumes on a product market shall be considered as having dominant position on the given product market, if they jointly capture, as sellers or acquirers, at least two thirds of the given market in terms of sale or acquisition volumes.
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Do officials account for violation of the Law?
  • Officials shall bear responsibility for violating the requirements of the Law as prescribed by the administrative legislation of the Republic of Armenia.
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Which are the scopes of the Commission authoritiesf?
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Which are the main legal bases of the legislation on competition?
  • The legal bases for the Law are:
    - Constitution of the Republic of Armenia,
    - Treaty on the Eurasian Economic Union and its annex 19,
    - Civil Code of RA, other laws of RA, other legal acts adopted by the RA Government, the Commission.
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Which body realizes the protection of economic competition?
  • The State Commission for the Protection of Economic Competition of the Republic of Armenia  shall be the competition body of the RA established for ensuring the implementation of the state policy in the field of protection of economic competition.
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What is the procedure for organization of the Commission activities?
  • The Commission shall perform its activities through sessions.
  • The session of the Commission shall have quorum when participated by at least five of the members.
  • The Commission shall hear issues at open-door sessions, except for cases when such discussion may cause damage to the interests of interested persons.
  • Sessions of the Commission shall be recorded in the minutes. The minutes of the session shall contain brief information about the venue, time, participants, and agenda of the session, speeches and voting results.
  • The Sessions shall be convened at a certain frequency or on ad hoc basis upon the request of any member of the Commission.
  • The Commission shall adopt a decision as a result of discussion.
  • In case of discussing procedural issues or in case of failure to adopt a decision on the merits (including convocation of a closed-door session, withdrawal of an issue from discussion, adjournment of discussion, inclusion of an additional issue in the agenda, giving instruction to the staff, etc.), the Commission shall adopt a verbal decision (protocol decision) through voting, whereof a record shall be made in the minutes.
  • Decisions of the Commission shall be adopted at the sessions by the majority votes of the members participating in the session. In case of a tie, the vote of the Chairperson of the Commission or the person substituting him or her shall be decisive.
  • Abstention from voting or transfer of a vote to another member shall not be allowed.
  • Non-participation of notified persons shall not be an obstacle for holding discussion and adopting decisions.
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What means of liability can be applied by the Commission?
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Are the losses of economic entities or other bodies compensated?
  • Damages caused to other economic entities or persons, due to actions (inaction) of an economic entity in violation of this Law, shall be subject to compensation by the economic entity having committed the violation as prescribed by the legislation.
  • Damages caused to economic entities or other persons by unlawful decisions, actions or conduct of a state body shall be subject to compensation as prescribed by the legislation.
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How are the anticompetitive agreements expressed?
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What is considered to be an anticompetitive agreement and what is not?
  • Within the meaning of thе Law, anti-competitive agreements is deemed as such transactions made between economic entities, their agreements, directly or indirectly concerted actions or conduct, and decisions adopted by unions of economic entities, which directly or indirectly lead or may lead to restriction, prevention or prohibition of competition.
  • Agreements of economic entities aimed at ensuring or enhancing their competitiveness, technical or economic progress, product promotion, product enhancement, promotion of product exports and support for the interests of consumers is not considered as anti-competitive.
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When is concentration considered to be a subject of declaration?
  • Concentration of economic entities, before putting it into effect, shall be subject to declaration if:
    - the joint value (amount) of assets or income of the concentration participants or the value (amount) of assets or income of at least one of the participants in the preceding financial year has exceeded the value (amount) of assets or income established by the decision of the Commission,
    - at least one participant of the concentration has dominant position in any product market.
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How is the state regulation of concentration carried out?
  • Concentration subject to declaration or significantly impeding economic competition, including also the concentration leading to creation of dominant position or strengthening the dominant position, shall be allowed based on the decision of the Commission, which may also include terms and conditions subject to mandatory implementation by the concentration participant/participants.
  • It is prohibited to put into effect any concentration subject to declaration prior to the adoption of the decision by the Commission.
  • Prohibited concentration, put into effect, is subject to liquidation (rescission, termination) as prescribed by legislation.
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What is considered to be an unfair competition?
  • Any act or conduct of entrepreneurial activity conflicting with this Law or customary business practices, violating the principles of fairness, i.e. honesty, equity, verity and impartiality among competitors or between the latter and consumers shall be deemed as unfair competition.
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What is “confusion” and how is it developed?
  • Тhe following shall be deemed as creation of confusion:
    - use of an unregistered trademark or service mark or design confusingly resembling a registered trade mark or service mark or design,
    - use of an unregistered trademark or service mark or design confusingly resembling an unregistered trademark or service mark or design which was used earlier,
    - use of a trademark or service mark or design identical to the registered trademark or service mark or design without permission of the right holder;
    - use of a firm name confusingly resembling a firm name, or illegal use of a firm name,
    - acts or conduct creating confusion with respect to the appearance of a product, such as packaging, colour or other non-functional features of the product,
    - actions or conduct creating confusion with respect to civil circulation participants, products, other means of identification, such as business symbols, signs or letters substituting words, slogans,
    - acts or conduct creating confusion with respect to the types of product presentation, including advertisement, service uniform, product delivery style;
    - use of names of distinguished persons, prominent persons popular in the field of literature, art or sport, names, other information, images of other prominent persons, full or partial reproduction, copy or otherwise usage of works, their titles, texts or images without consent (permission).
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How is the “misleading of society” expressed?
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What are the cases of considering whether the information is undisclosed or not?
  • Technical, organizational or commercial information, including trade secrets (know-how) are considered as undisclosed information.
  • The undisclosed information is not deemed:
    - Materials and data collected through administrative observations enclosed in reports,
    - Materials and data included in the reports of state statistics.
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What is considered to be usage of undisclosed information?
  • Use of undisclosed information is deemed as its application in entrepreneurial activities, as well as the introduction into economic circulation of products received or processed (reprocessed) based on its application. 
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