TurkmenistanAshgabat Consulting Team (ACT) |
"No one is perfect,a team can be!" |
Chambers Global |
3rd floor, 77 Gorogly Str.
Altyn Asyr Business Center
Ashgabat, 744000
Tel/Fax: +993 (12) 357-618/19/20
Monopolistic positions are not unusual in the Turkmeni market. Strategic market segments are generally implied to be monopolistic, sometimes even legally (the Law "On Communication" provides that the operators that hold monopoly position shall not discriminate against other market participants). Therefore a monopolistic position is not illegal on the condition that such position is permitted by the government (as a rule in form of license). Licenses are so rarely granted that the holding of such a license can automatically create a monopolistic or dominant position.
The Civil Code allows the creation of a competition clause in contracts whereby without the consent of an entrepreneur, their commercial representative is not eligible to act outside the territory or circle of customers. It's not clear where competition restriction extends beyond this lawful competition clause and becomes abuse of dominant position.
Taking the unclear status of monopoly activity in Turkmenistan into consideration it is advisable to consult with local counsel.