1.1 Underlying issues of competition regulations

Law No. 112-IV, On Competition, dated 25 December 2008 (Law on Competition or the Law) is the main act in the sphere of protection of competition in the Republic of Kazakhstan (the RoK). Certain relationships in connection with the protection of competition and restriction of monopolistic activities are governed by the following regulations:

International antitrust regulations

Treaty on Implementation of Coordinated Antimonopoly Policy (Moscow, 25January 2000) approved by Decree No. 1922 of the RoK Government, dated 28 December 2000;

Agreement between the RoK Government and the Government of the People's Republic of China on Cooperation in the Sphere of Antimonopoly Policy and Combating Unfair Competition (Beijing, 23 November 1999);

Treaty on Implementation of Coordinated Antimonopoly Policy (Ashgabat, 23 December 1993) ratified in accordance with Decree No. 97-XIII of the RoK Supreme Council, dated 22 June 1994;

Agreement on Antimonopoly Policy Coordination (Moscow, 12 March 1993).

Codes

Civil Code (General Part), dated 27 December 1994;

Administrative Violations Code No. 155-II, dated 30 January 2001;

Criminal Code, dated 16 July 1997.

Laws

RoK Law No. 124-III, On Private Entrepreneurship, dated 31 January 2006;

RoK Law No. 272-I, On Natural Monopolies and Regulated Markets, dated 9 July 1998.

Kazakhstan President's Edicts

Edict of the RoK President on Certain Issues of the Agency of the Republic of Kazakhstan for Competition Protection.

Resolutions of the Government

RoK Government Decree No. 141, Issues of the Agency of the Republic of Kazakhstan for Competition Protection (Antimonopoly Agency) , dated 15 February 2008;

RoK Government Decree No. 2341, On the Strategic Plan of the Agency of the Republic of Kazakhstan for Competition Protection (Antimonopoly Agency) for 2010-2014, dated 31 December 2009; and

RoK Government Decree No. 1115, On Approval of the Program for Competition Development in the Republic of Kazakhstan for 2010-2014, dated 26 October 2010.

Certain issues of internal activities of the antimonopoly authority are regulated by orders issued by the Board of the Antimonopoly Agency.

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1.2. Antitrust authorities: structure and competencies

The RoK Agency for Competition Protection (Antimonopoly Agency) (the Agency) together with its subordinate territorial inspectorates constitute the central executive authority (not included in the RoK Government) in the sphere of protection of competition, restriction of monopolistic activities and protection of consumers' rights.

Beside control over economic concentration and compliance with antitrust legislation; demonopolization of market entities that impede competition; prevention, identification, investigation, and suppression of antitrust legislation violations, the Agency's competence encompasses the following key areas:

• development and implementation of proposals regarding formation of the state policy in the sphere of protection of competition and restriction of monopolistic activities;
• implementation of cross-industry coordination among governmental authorities and other organizations in the sphere of protection of competition and restriction of monopolistic activities;
• international cooperation; and
• development of measures for improvement, of antitrust legislation as well as development and approval of laws and regulations in the sphere of development of competition, restriction of monopolistic activities and functioning of commodity markets.

The Agency is headed by the Chairman, who is appointed and dismissed by the RoK Government.

Alongside the Agency, the authorized body performing administration in the sphere of naturally formed monopolies and regulated markets is the RoK Agency for Regulation of Natural Monopolies. Certain natural monopolies are governed by industry regulatory authorities (Ministry of Communications and Information, RoK Agency for Regulation and Supervision of Financial Market and Financial Organizations).

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1.3. Extraterritoriality

The Law on Competition also applies to actions of market entities performed outside Kazakhstan, if such actions:

• affect, directly or indirectly, fixed assets located on the RoK territory and/or intangible assets or shares (participatory interests) of market entities, or property or non-property rights with respect to RoK legal entities; or
• limit competition in the RoK.

Kazakhstan is a party to the Agreement on Implementation of Coordinated Antimonopoly Policy (Moscow, 25 January 2000) and party to bilateral agreements in the sphere of coordinated antimonopoly policy implementation, which provides for the grounds and opportunities for joint actions in investigating violations of antitrust laws.

The Antimonopoly Agency is a member of the International Competition Network (ICN), which enables cooperation with antitrust agencies in the sphere of competition policy and updating the world business community on Kazakhstan's achievements in the development of competition policy.

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