Ukraine Considers to Introduce State Regulation of Prices in Abuse of Dominance Cases
The government of Ukraine may introduce a framework for state regulation of prices for goods (services) in abuse of dominance cases. The relevant draft resolution "On approval of the Procedure for state regulated prices for goods of business entities that violate the laws on protection of economic competition" was published on the website of the Ministry for Development of Economy, Trade and Agriculture of Ukraine for public consultations.
Under the draft resolution, state regulated prices may be applied based on the decision of the Antimonopoly Committee of Ukraine on abuse of dominance position (setting unfair prices / unfair conditions for consumers, price discrimination).
Dmytro Vidsota, Managing Partner of Robinson Patman Law Firm:
The action of the Price Regulation Procedure has a fairly wide range and catches almost all product groups (excluding items that are regulated by special laws – natural monopolies, electricity, natural gas, etc.). Previously, state regulation of prices had a negative business perception and was traditionally associated with pharmaceuticals and certain socially important products. If this resolution is adopted, Ukrainian business will get an extra tool to protect its economic interests. In addition to the AMCU, that may in its decision find an abuse, impose a fine and obligation to terminate the violation, the new competent authority may be established. The latter will introduce state regulation of prices of abusing entities.
The appointment of a particular competent authority that will be empowered to make decisions on price regulation depends on the market where the AMCU has found an abuse. For example, the Ministry of Economic Development, Trade and Agriculture of Ukraine will regulate prices for goods / services on national markets (except for medicines and telecommunications services). In particular, for this purpose, the Directorate for Pricing Policy and Development of the Real Sector of Economy has already been created at the Ministry of Economy.