Recommendations on approaches for calculation of fines for economic competition law infringements

Posted by antika on

Legal Alert, March 03, 2016

 

On February 16, 2016 the Antimonopoly Committee of Ukraine approved Recommendations on approaches for calculation of fines for economic competition law infringements including breach of the law on protection against unfair competition.

Recommendations contain changes and adjustments of the previously adopted order for calculation of fines for breach of legislation on protection of economic competition:

  • order for calculation of basic fine amount for breach of informational nature, which include: failure to provide the information, provision information not to the fullest extent or provision of unreliable information at the request of the AMCU or its local branch was changed. Now the AMCU recommends determining the basic fine amount for such breach regardless they caused negative consequences or not. The minimum fine amount that can be applied by the AMCU’s Headquarter to the economic entity for the committed informational violation is 27 200 UAH (previously – 13 600 UAH) and by the local branch of AMCU is 13 600 UAH (previously – 6800 UAH);
  • procedure for determining the basic fine amount for violations in the form of anticompetitive concerted actions of economic entities concerning bid rigging was introduced. The basic fine amount for these breaches of competition law is determined at the highest bid price of the participants of the anticompetitive concerted actions;
  • procedure for calculation of the basic fine amount for concentration without obtaining merger clearance of the AMCU bodies, which did not lead to monopolization or significant limitation of competition on product markets of Ukraine, was clarified;
  • procedure for determining the basic fine amount for violating the law on protection against unfair competition under which the basic fine amount for these violations is determined at 30% of income (revenue) from sales of products (goods, works and services), which was held with violation of legislation on protection against unfair competition, was revised;
  • Recommendations establish that proof of repeatedly committed informational violation by the economic entity is not considered as an aggravating circumstance, and the basic amount of the fine in this case shall not be increased.

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This Legal Alert is intended as a general overview of latest changes in legislation of Ukraine and does not constitute a legal advice.

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