Section III unfair competition

Article 7. Unfair Competition

Unfair competition is defined as:

—the illegal use of a trademark, brand name, or labeling of a commodity, as well as copying the form, pack­aging, external appearance, imitating, copying, or duplicating another business entity's commodity, or the unauthorized use of its name;

—the deliberate circulation of false or inaccurate infor­mation that may damage the business reputation or material interests of another business entity;

—obtaining, using, and publicizing a trade secret, as well as confidential information, with the intent to damage the business reputation or material interests of another business entity.

Section IV state supervision over observance of antimonopoly legislation

Article 8. State Policy on Containing Monopolism in Business Activities

1.State policy on containing monopolism in business activities, measures to demonopolize the economy, and financial, material and technical, informational, consul­tative, and other support to business entities that pro­mote competition shall be administered by the govern­ment and administrative organs authorized to perform these tasks.

2. The demonopolization of Ukraine's economy shall be carried out in accordance with a special program that is an integral pan of a single comprehensive program of the Government of Ukraine, which is subject to annual approval by the Supreme Soviet of Ukraine.

3. State supervision over observance of antimonopoly legislation and the protection of the interests of business entities from abuses of monopoly status and unfair competition are the responsibility of the Antimonopoly Committee of Ukraine to the extent of its jurisdiction.

Article 9. The Antimonopoly Committee of Ukraine

1. The Antimonopoly Committee of Ukraine is a body established by the Supreme Soviet of Ukraine. In the performance of its functions, the Antimonopoly Com­mittee of Ukraine is subordinate and accountable to the Supreme Soviet of Ukraine.

The Antimonopoly Committee of Ukraine is a legal entity and has its own seal bearing the stale emblem of Ukraine and its name.

The Antimonopoly Committee of Ukraine consists of the Chairman of the Antimonopoly Committee of Ukraine and ten state commissioners, who are appointed by the Supreme Soviet of Ukraine.

The Antimonopoly Committee of Ukraine shall estab­lish territorial administrations, whose powers shall be defined by the Committee within the limits of its juris­diction.

The structure, staff, and employee wage fund of the Antimonopoly Committee of Ukraine shall be estab­lished by the Committee's Chairman within the limits of designated allocations and with the approval of the Presidium of the Supreme Soviet of Ukraine.

The office of state commissioner may be held by a citizen of Ukraine, who is at least 30 years old, has a higher education with, as a rule, a degree in law or economics, and has worked in his specialty for at least five of the last ten years.

2. In the performance of its duties, the Antimonopoly Committee of Ukraine is guided by this Law, other legislative acts of Ukraine, as well as the Statute on the Antimonopoly Committee of Ukraine, which is subject to approval by the Supreme Soviet of Ukraine.

Article 10. State Commissioners of the Antimonopoly Committee of Ukraine

1. State commissioners are appointed to a term of seven years.

2. State commissioners may not be appointed for longer than two consecutive terms.

3. A state commissioner appointed to take the place of one who has left shall be appointed only for the duration of the term remaining to the state commissioner whom he or she has replaced.

4. State commissioners may be removed from office before the expiration of their terms by a decision of the Supreme Soviet of Ukraine in the event of violations of legislation or abuse of office.

Article 11. Powers of the Antimonopoly Committee of Ukraine

In order to support entrepreneur-ship and the develop­ment of competition, the Antimonopoly Committee of Ukraine has the power to:

—define the status of a business entity in the market as monopolistic in the instances provided for by Article 3 of this Law;

—issue cease and desist orders binding on business entities against violations of antimonopoly legislation and order them to resume their initial status; issue orders requiring the compulsory partition of monopolistic entities and orders voiding illegal agreements between business entities;

—issue orders binding on administrative organs to revoke or amend any illegal acts passed by them, orders to terminate violations and agreements entered into by them that contravene antimonopoly legislation;

—supervise observance of antimonopoly provisions gov­erning the creation, reorganization, or liquidation of monopolistic entities, as well as the acquisition of shares (stocks) that might result in ensuring a business entity monopoly status in the market;

—submit recommendations to the appropriate govern­ment and administrative organs on revoking the licenses and halting the foreign economic operations of business entities that violate antimonopoly legisla­tion;

—pass regulations on the imposition of fines in instances stipulated by Article 19 of this Law;

—bring actions before the court or arbitral tribunal against business entities that violate antimonopoly legislation;

—submit recommendations to government and admin­istrative organs on implementing measures aimed at promoting entrepreneurship and competition;

—engage in activities whose purpose is to ensure obser­vance of antimonopoly legislation.

Article 12. Regulations of the Andmonopoly Committee of Ukraine The Antimonopoly Committee of Ukraine and its territorial administrations are empowered to pass binding regulations within the limits of their jurisdiction.

Article 13. Right of Access to Information

1. The state commissioners of the Antimonopoly Com­mittee of Ukraine have the right of unhampered access to information held by government and administrative organs, as well as by all business entities, in matters connected with the observance of antimonopoly legisla­tion.

2. At the request of the stale commissioners of the Antimonopoly Committee of Ukraine, business entities and government and administrative organs and their officials are obliged to submit documents, written and oral explanations, and other information required by the Antimonopoly Committee of Ukraine and its territorial administrations to carry out the tasks stipulated by this Law.

3. Any information obtained by the Antimonopoly Com­mittee of Ukraine and its territorial administrations that constitutes a business secret may not be published.

Losses caused by the publication of information that constitutes a business secret shall be compensated in the full amount by the Antimonopoly Committee of Ukraine in legal form from the slate budget.

Article 14. Regulating the Creation, Reorganization (Merger, Partnership), and Liquidation of Monopolistic Entities

To prevent certain business entities from achieving monopoly status in the market, the Antimonopoly Com­mittee of Ukraine and its territorial administrations shall take preliminary action to regulate the reoiganization (through mergers and partnerships) of enterprises;

the creation of associations, concerns, interindustry, regional, and other associations of enterprises; the trans­formation of administrative organs into such associa­tions; as well as the creation, reorganization (through mergers and partnerships), and liquidation of compa­nies.

Article 15. Regulating the Acquisition of Shares (Stocks) in the Charter Fund of Companies

A business entity may acquire the controlling block of shares (a simple majority of votes) in a joint-stock company which has monopoly status on condition that it reports this to the Antimonopoly Committee of Ukraine and its territorial administrations within the period of a month.

The regulations in this article are also applicable in instances when a business entity acquires holdings (shares) in another company which has monopoly status.

Article 16. Mandatory Partition of Monopolistic Entities

1. If business entities abuse their monopoly status in the market, the Antimonopoly Committee of Ukraine and its territorial administrations have the right to order such entities to be partitioned.

2. Mandatory partition shall not be applied in instances when:

—the organizational or territorial separation of enter­prises, structural subdivisions, or structural units is impossible;

—there exist close technological ties between enter­prises, structural subdivisions, or structural units (if the portion of the internal turnover of the total volume of gross output of the enterprise (association, etc.) comprises less than 30 percent.

3. The decision of the Antimonopoly Committee of Ukraine and its territorial administrations on the man­datory partitioning of enterprises (associations, etc.) must be implemented within the stipulated period of time, which may not be less than six months.

The reorganization of a monopolistic entity, subject to mandatory partitioning, shall be conducted at the entity's own discretion on condition that it ceases to hold monopoly status in the market.

Article 17. The Scientific-Consultative Council of the Antimonopoly Committee of Ukraine

The Scientific-Consultative Council of the Antimonopoly Committee of Ukraine has been formed to develop the principles underlying the functions and the organization of the activities of the Antimonopoly Committee of Ukraine, to develop the methodology and methods of supervising observance of antimonopoly legislation, and to draft recommendations on the imple­mentation and improvement of this supervision as well as on other matters.

The Scientific-Consultative Council is an advisory organ of the Antimonopoly Committee of Ukraine.

The composition of the Scientific-Consultative Council and the statute on it are subject to approval by the Antimonopoly Committee of Ukraine.

Article 18. Funding for the Antimonopoly Committee of Ukraine

Funds for maintaining the Antimonopoly Committee of Ukraine shall be appropriated directly from the state budget. The sum of these funds shall be determined annually by the Supreme Soviet of Ukraine when the state budget is approved.