MONOPOLY ACTIVITY

According to Chapter 15 of the Entrepreneurial Code of the Republic of Kazakhstan, monopolistic activity is the activity of market entities, the position of which makes it possible to control the relevant commodity market, including the ability to exert a significant influence on the general conditions for the circulation of goods in the relevant commodity market.

1. A dominant or monopoly position is the position of a market entity or several market entities in the relevant commodity market, which gives the market entity or several market entities the opportunity to control the relevant commodity market, including to exert a significant influence on the general conditions for the circulation of goods.
2. The dominant position of a market entity is established in accordance with the Methodology for conducting an analysis of the state of competition in the commodity market, approved by the antimonopoly authority.
3. The position of a market entity whose share in the relevant commodity market is thirty-five percent or more is recognized as dominant, if the following circumstances are established in relation to such a market entity:

1) the ability of a market entity to unilaterally determine the level of the price of goods and exert a decisive influence on the general conditions for the sale of goods on the goods market;

      2) the presence of economic, technological, administrative or other restrictions on access to the commodity market;

      3) the duration of the existence of the possibility of a market entity to have a decisive influence on the general conditions for the circulation of goods on the commodity market.

In the event that a market entity occupies a share of fifty or more percent, the position of the market entity is recognized as dominant without taking into account the circumstances listed in subparagraphs 1), 2) and 3) of part one of this paragraph.

4. The position of each of several market entities shall be recognized as dominant if the aggregate share of no more than three market entities, which own the largest shares in the relevant commodity market, is fifty percent or more, or the aggregate share of no more than four market entities, which hold the largest shares in the relevant commodity market is seventy percent or more, if the following circumstances are established in relation to such a market entity:

1) for a long period (for at least one year or, if such a period is less than one year, during the period of existence of the relevant commodity market), the relative size of the shares of market entities is unchanged or subject to minor changes;

      2) goods sold or purchased by market entities cannot be replaced by other goods when consumed (including when consumed for production purposes);

3) information on the price and (or) on the conditions for the sale of this product on the relevant product market is available to an indefinite circle of persons.

5. The position of financial organizations is recognized as dominant if:

      1) the aggregate share of no more than two financial institutions, which own the largest shares in the relevant financial services market, is fifty or more percent;

2) the total share of no more than three financial institutions, which own the largest shares in the relevant financial services market, is seventy percent or more.

6. In accordance with paragraphs 4 and 5 of this article, the position of a market entity whose share in the relevant commodity market, including the financial services market, does not exceed fifteen percent cannot be recognized as dominant.
7. The position of subjects of natural monopoly, state monopoly, special law, as well as market entities occupying a 100% share of dominance in the relevant commodity market (subjects holding a monopoly position) is recognized as a monopoly.
8. A market entity has the right to submit evidence to the antimonopoly authority that the position of this market entity in the commodity market cannot be recognized as dominant.

The antimonopoly authority, within fifteen working days from the date of receipt, considers the submitted evidence and makes an appropriate decision, which is sent to the market entity.