The Competition Council will be granted more powers to enhance the protection of fair competition in Moldova.
In particular, this is provided for by the relevant draft amendments to the Competition Law, which were approved by the Parliament in the first reading. The document was submitted by the government and its elaboration was necessary in order to reform and ensure the operational independence of the above institution. It is planned that the Competition Council will receive more powers for more effective application of the legislation in the field of functioning of the internal market and protection of fair competition in accordance with the rules of the European Union. The amendments to the Competition Law propose, in particular, an explicit ban on the use of benefits for anticompetitive agreements manifested through cartel agreements. At the same time, a relative presumption is established in terms of occupying a dominant position in a certain relevant market by the companies. The law also introduces a number of amendments concerning the regulation of economic concentration operations, including a proposal to increase the volume of turnover achieved cumulatively by the companies involved in the operation. At the same time, to determine the basic amount of the fine, the total turnover of a company or association of companies in the year preceding the imposition of a sanction shall be taken as the basis for calculation. The maximum threshold is proposed to be increased from 5% to 10% of the turnover, as it is provided for in the EU. The proposed amendments would ensure the individualization, calculation and proper application of sanctions for violations of competition law in the sphere of economic concentration. In order to ensure the operational independence of the competition agency, there is an explicit provision to exclude any possible external, political or other interference that might call into question the impartiality of the Competition Council. Another important element that can contribute to the independence of the competition authority is the resources it will have to exercise its powers under the law. Another important change concerns the term and manner of challenging the administrative acts of the Competition Council. In order to shorten the long term for courts to consider complaints (6-7 years in some cases) and to provide real opportunities for early termination of violations of the Competition Law, it is proposed to consider complaints filed against administrative acts issued by the Competition Council to preserve the jurisdiction of the Chisinau Court of Appeals, with a note that filing a complaint in administrative proceedings will not suspend the execution of the challenged administrative acts. It will be clearly regulated that the antimonopoly body can conduct inspections at any enterprises, associations of enterprises, including state administration bodies. This amendment is necessary to ensure the right of national administrative competition authorities conducting inspections to access the information available to the enterprise or person being inspected. Another amendment will ensure that people can be heard remotely, through teleconferences or videoconferences. The new section of the Competition Act will facilitate cooperation between the Competition Council and other competition authorities, in particular from EU countries. The bill must also pass the second reading. Chairman of the Economic, Budget and Finance Commission Radu Marian said that there will be hold public consultations to agree on all proposals and amendments, as it is a framework bill of great importance for Moldova’s economy, and its adoption is a condition of the EU. // 25.05.2023 - InfoMarket.
