Section II Abuse of monopoly position on the market. Unlawful agreements. Discrimination against entrepreneurs

Article 3. Definition of monopoly position

(Validity of this article is suspended in accordance with the Decree of the Cabinet of Ministers of Ukraine of May 12, 1993

No. 49-93.)

Entrepreneurs' monopoly position on the market for all kinds of capitalized products (industrial and technical production) and for capitals (finances, securities, etc.) being in circulation shall be defined within the territory of Ukraine.

Entrepreneurs' monopoly position on the market for all kinds of consumer products and for all kinds of works and services shall be defined by the Antimonopoly Committee of Ukraine and its terri­torial offices within an administrative region or an autonomy (district, settlement).

Article 4. Abuse of monopoly position on the market

It shall be considered to constitute an abuse of monopoly position:

imposition of contract terms creating a disadvantage for counterparts or imposition of additional terms having nothing in common with the subject of a contract, including imposition of a needless product on a counterpart;

limitation or stoppage of production of products and their removal from circulation for the purpose of creating or main­taining deficit on the market or for the purpose of setting mo­nopoly prices;

partial or complete refusal to realise or procure a product in the absence of alternative procurement or sales sources for the purpose of creating or maintaining deficit on the market or for the purpose of setting monopoly prices;

other actions for the purpose of creating barriers to entry to (to withdrawal from) the market for other entrepreneurs;

setting of such discriminatory prices (tariffs, rates) on one's own products which limit rights of certain consumers;

setting of monopoly high prices (tariffs, rates) on one's own products, resulting in violation of consumer rights;

setting of monopoly low prices (tariffs, rates) on one's own products, resulting in limitation of competition.

(The changes have been made in accordance with the Law of Ukraine of July 5, 1995 No. 258/95-BP.)

Article 5. Unlawful agreements between entrepreneurs

Such agreements between (concerted actions of) entrepreneurs shall be considered to constitute unlawful ones which are directed at:

setting (maintenance) of monopoly prices (tariffs), rebate's, extra charges (additional payments), increases of price;

distribution of markets on the principle of territory, assort­ment of products, volume of product realization or product procure­ment, or according to the circle of consumers, or according to other indications for the purpose of monopolizing the given markets;

removal of sellers, buyers, and other entrepreneurs from the market or limitation of their access to it.

Article 6. Discrimination practised by power and management bodies against entrepreneurs

1. It shall be considered to constitute discrimination practised by power and management bodies against entrepreneurs:

prohibition against creation of new enterprises or other entrepreneurship organization forms in any sphere of activities and against putting limitations on participation in creation activ­ities, on production of certain kinds of products for the purpose of limiting competition;

compulsion of entrepreneurs to join associations, concerns, interbranch, regional, and other amalgamations of enterprises and to practice a priority conclusion of contracts as well as to provi­de a primary supply to a certain circle of consumers;

making decisions on centralised distribution of products, resulting in monopoly position on the market;

establishment of prohibition against realisation of products from one region of the republic into another one;

giving certain entrepreneurs tax and other privileges, which place them in a privileged position with respect to other entre­preneurs, resulting in monopolization of the market of a certain product;

limitation of the rights of entrepreneurs to procure and realize products;

establishment of prohibitions or limitations with respect to certain entrepreneurs or groups of entrepreneurs.

2. Conclusion of agreements between power and management bodies, creation of state management structures or giving existing ministries, state committees, and other state management structures powers to perform actions provided by point 1 of this article shall also be considered to constitute discrimination against entrepre­neurs.

3. Exemptions from the provisions of this article can be established by legislative acts of Ukraine for the purpose of national security, defense, public interests.

(The changes have been made in accordance with the Law of Ukraine of July 5, 1995 Ко. 258/95-ЗР.)