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Public interest commodity markets to keep price regulation until 2020: K.Bishimbayev

by October 6, 2016 General

K. Bishimbayev noted that the document requested to identify the problem, the status and work sequence of Antimonopoly Service, as well as the mechanism of interaction with law enforcement and antitrust authorities of other countries.

The bill abolishes exceptions to exclusive rights to intellectual property, if the agreements are anti-competitive in nature and may pose a threat to competition, which will respond when Kazakhstan businessmen impose agreements with specific representatives of foreign producers.

Taking into account good practices, it is proposed to extend the application of the institute notice, extending it to unfair competition and abuse of dominant position, with the exception of setting monopolistically high prices.

The Minister reminded that Kazakhstan renounced price regulation from 1 January 2017, by proposing antimonopoly response tools.

“This is a very flexible tool, which has severe financial consequences for market players who abuse their market position,” K. Bishimbayev said.

According to him, the analysis of more than 47 product markets, which has allowed to identify areas where there may be price spikes and rise of social tensions. It is proposed to maintain price regulation for these product markets tentatively until January 1, 2020, defining them socially significant.

In addition, the bill introduces a number of amendments to the law on natural monopolies, which are aimed at changing attitudes to government regulation.

“We proposed a phased introduction relevant to the best international practices, stimulating methods of regulation of natural monopolies entities to increase their efficiency,” the Minister said to senators.

The senators asked the representatives of the Ministry issues relating to changes in legal regulations in the area of antitrust and regulation of prices for certain types of goods. During the discussion, the deputies also made a number of proposals on the content of the bill under discussion.

K. Bishimbayev noted the interest of participation of Senate deputies in improving anti-monopoly legislation, saying that the new draft law “On natural monopolies” will be presented to the Parliament next year.

Source: The Prime Minister of Kazakhstan