On Competition

Law of Georgia

On Competition

Law of Georgia of 21 March 2014 No. 2159 – website, 27.03.2014.

Article 1. Scope of🔗

regulation

of the Law

1. This Law establishes

the principles of protection against unlawful restriction of free and fair competition, which is the basis for the development of free trade and a competitive market.

2. This Law determines the actions unlawfully restricting free trade and competition, the legal grounds for preventing and suppressing violations of free trade and competition, and the

competence of the authorised body.

3. This Law applies to:

a) actions and decisions of an economic agent, state authority, authority of an autonomous republic, municipal body, its official and other administrative body, which cause and/or which may cause restriction, inadmissibility and suppression of free trade and competition in the commodity and service markets of Georgia, except for the cases provided for by this Law;

b) an action carried out outside the borders of the country which affects competition in the country's domestic market and restricts it and/or substantially worsens the competitive environment.

4. This Law shall not apply to:

a) labour relations;

b) relations related to intellectual property rights, except where these rights are used for the restriction and suppression of competition;

c) (removed – 16.09.2020, No. 7126);

d) relations arising in the process of exercising resolution powers in accordance with the Organic Law of Georgia "On the National Bank of Georgia" and the Law of Georgia "On the Activities of Commercial Banks".

5. (removed – 21.03.2014, No. 2159).

Law of Georgia of 21 March 2014 No. 2159 – website, 27.03.2014.

Law of Georgia of 20 December 2019 No. 5662 – website, 31.12.2019.

Law of Georgia of 15 July 2020 No. 6893 – website, 28.07.2020.

Law of Georgia of 16 September 2020 No. 7126 – website, 21.09.2020.

Article 2. Purpose of the Law🔗

The purpose of this Law is to promote market liberalization, free trade and competition in Georgia, namely:

a) protection of the principle of equal rights in the activities of economic agents;

b) ensuring the creation of appropriate conditions for free access of economic agents to the market;

c) inadmissibility of unjustified restriction of competition by an economic agent, namely, prohibition of abuse of a dominant position, of a competition-restricting contract, decision and concerted action, and inadmissibility of concentration that substantially restricts effective competition, as well as prohibition of unfair competition;

d) inadmissibility by the state authorities, the authorities of the Autonomous Republic, a municipal body, another administrative body of administrative, legal and discriminatory barriers to entry into the market;

e) inadmissibility by the state authorities, the authorities of the Autonomous Republic, a municipal body, another administrative body of granting to an economic agent such exclusive authority and/or selective economic advantage as unjustifiably restricts competition;

f) ensuring maximum publicity, objectivity, non-discrimination and transparency when a decision is taken by the authorized body.

Law of Georgia of 15 July 2020 No. 6893 – website, 28.07.2020.

Law of Georgia of 16 September 2020 No. 7126 – website, 21.09.2020.

Article 3. Definition of terms used in this Law🔗

The terms used in this Law have the following meaning:

a) economic agent – a natural person, legal person, other union or association that carries out economic activity, regardless of residency or the legal form of the legal person;

b) competition – rivalry between economic agents operating or potential in the relevant market for gaining advantage in that market;

c)

competing economic agent – an economic agent operating or potential in the relevant market;

d) potential competing economic agent − an interested economic agent that has a substantiated intention to enter the relevant market;

e) non-competing economic agent − an economic agent that is not a competing economic agent;

f) interchangeable goods and services – goods or a group of goods and/or services or a group of services, one of which may be replaced by the other in the process of consumption and/or production according to functional purpose, use, substantial satisfaction of demand or other characteristics;

g) relevant market – the sphere of circulation of goods, interchangeable goods or services in a certain territory, the boundaries of which are determined taking into account the economic possibilities and expediency of purchasing the goods/services and may cover the entire territory of Georgia, part of the territory of Georgia, or the entire territory of Georgia or part thereof together with the territory of another country or part thereof;

h) (removed - 16 September 2020, No. 7126).

i) dominant position – such a position of an economic agent/economic agents operating in the relevant market that enables it/them to act independently of competing economic agents, suppliers, clients and final consumers, to have a substantial effect on the general conditions of circulation of goods in the relevant market and to restrict competition. If there is no other evidence, an economic agent/economic agents shall not be considered as having/having a dominant position if its/their share in the relevant market does not exceed 40 percent. Each of two or more economic agents shall be considered as having a dominant position if they do not experience significant competition from within and outside the group under consideration from other economic agents operating in the relevant market, taking into account the limited access to the source of raw materials and the sales market, the barriers to entry into the relevant market and other factors determining market power, provided that:

i.a) the joint share of no more than 3 economic agents exceeds 50 percent, and the market share of each is not less than 15 percent;

i.b) the joint share of no more than 5 economic agents with the most significant shares exceeds 80 percent, and the market share of each is not less than 15 percent;

j) (removed - 21 March 2014, No. 2159);

k) interdependent persons – persons between whom the existence of special relations may influence the conditions or economic results of the activity of them and/or of persons represented by them. The following shall be considered interdependent persons:

k.a) a person who is a member of the supervisory board of one economic agent or a person authorised to manage and represent it and at the same time is a member of the supervisory board of another economic agent or a person authorised to manage and represent it, which enables him/her to exercise direct or indirect control over this economic agent;

k.b) a person who is a member of the supervisory board of one economic agent and at the same time holds such an amount of voting shares/interest of another economic agent as enables him/her to exercise direct or indirect control over this economic agent;

k.c) a person who holds a significant voting right in one economic agent and at the same time – a significant voting right in another economic agent, which enables him/her to exercise direct or indirect control over this economic agent;

k.d) interdependent persons provided for by the Tax Code of Georgia;

l) control – a situation where a person is able to exercise direct or indirect material influence over a decision of an economic agent and at the same time:

l.a) the person holds such an amount of voting shares/interest of the economic agent as enables him/her to appoint the majority of the members of the governing body;

l.b) the person holds the operating assets in full or a significant part thereof;

l.c) the person is a member of the supervisory board or a person authorised to manage and represent;

l.d) the person has a significant voting right in transactions;

m) applicant – a person who has information or evidence that the legislation of Georgia on competition is materially violated, but as a result of which he/she does not directly suffer property damage, and who applies with a corresponding application to the Legal Entity of Public Law − the Competition and Consumer Protection Agency of Georgia;

n) complainant – an economic agent who considers that as a result of a violation of the legislation of Georgia on competition he/she directly suffers property damage, and who applies with a corresponding complaint to the Legal Entity of Public Law − the Competition and Consumer Protection Agency of Georgia;

n¹) cooperation programme − a special rule for fully or partially exempting a person from the imposition of a fine for a violation of Article 7 of this Law, where the conditions established by law are met;

o) horizontal agreement – an agreement between economic agents and/or potential economic agents operating at the same level of the production chain and/or distribution chain;

p) vertical agreement − an agreement between economic agents and/or potential economic agents operating in the relevant market, each of which, for the purposes of this agreement, operates at a different level of the production chain and/or the distribution chain, and this agreement concerns the terms of purchase and/or sale of goods or services by the parties;

q) regulated sphere of the economy – the sphere established by the Organic Law of Georgia "On the National Bank of Georgia", the Law of Georgia "On Electronic Communications", the Law of Georgia "On Broadcasting", the Law of Georgia "On Energy and Water Supply", the sphere of municipal services, in which free price formation and competition are restricted and which is defined as a regulated economic sphere by a Resolution of the Government of Georgia and is subject to tariff regulation;

r) state aid – the granting of a selective economic advantage to an economic agent by a state aid granting body through the transfer of budgetary funds or state resources or the establishment of another benefit;

s) state aid granting body – a body of state authority, a body of the authority of an autonomous republic, a municipality, a non-entrepreneurial (non-commercial) legal entity, a legal entity of public law, an enterprise established with more than 50 percent share participation of the state, an intermediary economic agent acting on behalf of the state, which, for the purpose of granting state aid, exercises the relevant authority directly or indirectly;

t) (removed - 16.09.2020, No. 7126);

u) (removed - 16.09.2020, No. 7126).

Law of Georgia of 22 June 2012 No. 6544 - website, 4 July 2012.

Law of Georgia of 6 September 2013 No. 1040 – website, 23 September 2013.

Law of Georgia of 20 November 2013 No. 1586 - website, 3 December 2013.

Law of Georgia of 21 March 2014 No. 2159 - website, 27 March 2014.

Law of Georgia of 20 December 2019 No. 5650 – website, 27 December 2019.

Law of Georgia of 15 July 2020 No. 6893 – website, 28 July 2020.

Law of Georgia of 16 September 2020 No. 7126 – website, 21 September 2020.

Law of Georgia of 29 November 2023 No. 3754 – website, 11 December 2023.

Article 4. Authorised body🔗

1. The body authorised to enforce the requirements established by this Law is an independent legal entity of public law created on the basis of this Law − the Competition and Consumer Protection Agency of Georgia (hereinafter – the Agency).

2. In the cases provided for by this Law, the authority defined by paragraph 1 of this Article shall be exercised by the regulatory body of the regulated sphere of the economy.

Law of Georgia of 6 September 2013 No. 1040 – website, 23 September 2013.

Law of Georgia of 21 March 2014 No. 2159 - website, 27 March 2014.

Law of Georgia of 16 September 2020 No. 7126 – website, 21 September 2020.

Law of Georgia of 29 November 2023 No. 3754 – website, 11 December 2023.

Article 5. Dominant position and criteria for its determination🔗

1. A dominant position shall be determined on the relevant market taking into account the market share of the economic agent, as well as the market shares of its competitors, barriers to entry into the market, barriers to expansion of production, the buyer's market power, access to sources of raw materials, the degree of vertical integration, network effects and other factors determining market power.

2. The market share and market power of an economic agent shall be determined by the Agency using the methodological guidelines for market analysis, which it adopts by the relevant legal act.

Law of Georgia of 21 March 2014 No. 2159 - website, 27.03.2014.

Law of Georgia of 16 September 2020 No. 7126 – website, 21.09.2020.

Article 6. Abuse of a dominant position🔗

1. Abuse of a dominant position by one economic agent or several economic agents (in the case of a collective dominant position) shall be inadmissible.

2. The following actions may be considered abuse of a dominant position:

a) direct or indirect imposition (fixing) of unfair purchase or selling prices or other unfair trading conditions;

b) limitation of production, markets or technological development to the detriment of consumer interests;

c) application of dissimilar conditions to identical transactions with certain trading partners, thereby placing them in a non-competitive position;

d) imposition on a party to a transaction, for the purpose of concluding the transaction, of such an additional condition/obligation that is neither materially nor commercially related to the subject matter of the transaction, and others.

Law of Georgia of 21 March 2014 No. 2159 - website, 27.03.2014.

Law of Georgia of 16 September 2020 No. 7126 – website, 21.09.2020.

Article 7. Competition-restricting contract, decision and concerted practice🔗

1. It shall be prohibited for economic agents, among themselves or within an association of economic agents, to conclude a contract, adopt a decision or engage in a concerted practice the purpose or effect of which is to restrict, prevent and/or prohibit competition in the relevant market (hereinafter – agreement), in particular:

a) directly or indirectly setting (fixing) the purchase or sale price or other trading conditions;

b) restricting production, markets, technological development or investment;

c) allocating markets or sources of supply by customer, territory or other characteristic;

d) applying dissimilar conditions to equivalent transactions with certain trading partners, thereby placing them at a competitive disadvantage;

e) setting/imposing on a party, for the conclusion of a transaction, supplementary conditions/obligations which have no substantive and commercial connection with the subject matter of the transaction.

2. A prohibited agreement provided for by this Article shall be void if the exceptions established by this Law do not apply to it.

Law of Georgia No. 2159 of 21 March 2014 – website, 27 March 2014.

Law of Georgia No. 7126 of 16 September 2020 – website, 21 September 2020.

Article 8. Agreement insignificantly restricting competition🔗

1. The prohibition provided for by Article 7 of this Law shall not apply to an agreement existing between economic agents if:

a) the combined share of the parties to a horizontal agreement in the relevant market does not exceed 10 per cent;

b) the market share of each party to a vertical agreement in the relevant market does not exceed 15 per cent;

c) the agreement contains features of both a horizontal agreement and a vertical agreement, which makes it difficult to classify it as a horizontal agreement or a vertical agreement, and the market share of each party to the agreement in the relevant market does not exceed 10 per cent.

2. The provisions of paragraph 1 of this Article shall not apply in the cases provided for by subparagraphs “a” and “c” of paragraph 1 of Article 7 of this Law.

Law of Georgia No. 2159 of 21 March 2014 – website, 27 March 2014.

Law of Georgia No. 7126 of 16 September 2020 – website, 21 September 2020.

Article 9. Exceptions from the prohibition of a competition-restricting agreement🔗

1. The provisions of paragraph 1 of Article 7 of this Law may not be applied to an agreement which contributes to the improvement of production and/or supply and to technical-economic progress and, at the same time, ensures the growth of consumer welfare, if these provisions:

a) do not impose on the economic agents participating in the agreement such a restriction as is not related to the achievement of the above goals;

b) do not enable the economic agents participating in the agreement to prevent competition in a significant part of the relevant market.

2. The substantiation of the circumstances provided for by paragraph 1 of this Article shall be the responsibility of the relevant economic agents.

3. Block exemptions from the prohibition of a competition-restricting agreement, which are related to a specific type of agreement, shall be established for a definite term by a relevant normative act of the Government of Georgia.

Law of Georgia of 21 March 2014 No. 2159 – website, 27.03.2014.

Law of Georgia of 16 September 2020 No. 7126 – website, 21.09.2020.

Law of Georgia of 29 November 2023 No. 3754 – website, 11.12.2023.

Article 10. Inadmissibility of restriction of competition by the state authority, the authority of an autonomous republic, a municipal body, another administrative body🔗

The state authority, the authority of an autonomous republic, a municipal body, another administrative body shall be prohibited from:

a) creating a union, association, amalgamation or another type of entrepreneurial structure, if this causes weakening or restriction of competition, except for cases provided for by the legislation of Georgia;

b) establishing for an economic agent such a benefit as gives it an advantage compared to competitors or potential competitors and restricts competition, except for cases provided for by the legislation of Georgia;

c) prohibiting, suspending or otherwise hindering the economic activity and/or independence of an economic agent, except for cases provided for by the legislation of Georgia;

d) creating a state structure for the monopolization of production or sale of goods, or granting to an existing state structure such authority as restricts competition, except for cases provided for by the legislation of Georgia;

e) adopting such a decision as creates a dominant position for an economic agent, which substantially restricts free price formation and competition, except for cases provided for by the legislation of Georgia.

Law of Georgia of 21 March 2014 No. 2159 – website, 27.03.2014.

Law of Georgia of 15 July 2020 No. 6893 – website, 28.07.2020.

Law of Georgia of 16 September 2020 No. 7126 – website, 21.09.2020.

Article 10¹. Assessment of the competitive effect of a regulatory action🔗

To ensure advocacy of the competition process, the Agency, on the basis of a decision of the Government of Georgia, assesses acceptable decisions and legal acts related to the economic sphere, and privatization and investment projects to be implemented, in order to determine their compliance with this Law.

Law of Georgia of 21 March 2014 No. 2159 – website, 27.03.2014.

Law of Georgia of 16 September 2020 No. 7126 – website, 21.09.2020.

Article 11. Concentration🔗

1. Concentration is:

a) the merger of two or more independent economic agents, as a result of which one economic agent is created;

b) the acquisition, by another one or several economic agents or by another one or several persons which is/are not considered an economic agent/economic agents for the purposes of this law and which already controls/control at least one economic agent, of direct or indirect, full or partial control over one or several economic agents through the acquisition of securities or a share, contracts or other means;

c) the creation of a joint venture, if it performs on a lasting basis all the functions of an independent economic agent.

2. For the purposes of concentration, the rights, contracts or other means which, separately or together, create the possibility of exercising material influence over an economic agent shall be used to exercise control, namely:

a) the holding of a share in an economic agent, the right to use this share and/or its assets in full or in part;

b) a right (a right provided for by contract and other), which provides the possibility of exercising material influence over the composition of the managing bodies of the economic agent, the voting right and the decision.

3. A concentration which does not substantially restrict effective competition in the market of goods or services of Georgia or a part thereof is compatible with the competitive environment.

4. A concentration which substantially restricts effective competition in the market of goods or services of Georgia or a part thereof is inadmissible.

5. If a concentration creates or strengthens a dominant position, it shall be presumed that such concentration substantially restricts effective competition in the market of goods or services of Georgia or a part thereof, except where the economic agent substantiates the contrary.

6. For the registration of a concentration of persons who bear the obligation of notification on concentration defined by Article 11¹ of this law, a decision of the Agency on the competitive effect of the expected concentration must exist. The Agency's refusal is a ground for refusal of registration of the concentration by the Legal Entity of Public Law operating in the field of governance of the Ministry of Justice of Georgia – the National Agency of Public Registry.

7. If, as a result of the concentration to be implemented, a substantial restriction of effective competition is expected, the party/parties to the concentration may propose to the Agency the implementation of a change (modification) of the operation in the form of a structural and/or behavioural measure. If the Agency considers that, as a result of the said modification, the concentration will satisfy the requirement established by paragraph 3 of this Article, the Agency adopts a decision on the compatibility of the concentration with the competitive environment.

8. The decision of the Agency provided for by paragraph 7 of this Article may indicate information on a structural and/or behavioural measure to be implemented by the party/parties to the concentration and the time limit for its implementation.

9. If the concentration has been implemented and the party/parties to the concentration has/have not implemented, within the relevant time limit, the structural and/or behavioural measure provided for by paragraph 8 of this Article, the Agency shall impose a fine on it/them in accordance with Article 33 of this Law. Along with imposing a fine on the party/parties to the concentration, the Agency shall submit a motion to the court for the unwinding of the concentration in order to restore the initial state. To achieve this purpose, the party/parties to the concentration may be imposed with various obligations, including the obligations to divest an enterprise, a share, assets, securities or a part thereof, to carry out reorganisation, to terminate a specific contract. At the same time, the party/parties to the concentration shall be set a time limit for the fulfilment of the imposed obligations.

Law of Georgia No. 2159 of 21 March 2014 – website, 27.03.2014

Law of Georgia No. 7126 of 16 September 2020 – website, 21.09.2020

Law of Georgia No. 3754 of 29 November 2023 – website, 11.12.2023

Article 11¹. Notification on concentration🔗

1. A notification on concentration shall be submitted to the Agency in advance, in writing and in full, where both the individual and the total combined revenue of the participating parties to the concentration during the financial year preceding the implementation of the concentration in the territory of Georgia exceeds the threshold amount established by the procedure for submission and review of a notification on concentration.

2. The procedure for submission and review of a notification on concentration shall be approved by a legal act of the Agency.

3. The fee established for the review by the Agency of a notification on concentration shall be GEL 5,000, which shall be paid into the budget of the Agency.

4. Within 10 working days from the receipt of a notification on concentration, the Agency shall verify whether the planned concentration falls within the scope of regulation of this Law, and shall notify the person(s) submitting the said notification thereof.

5. If the planned concentration falls within the scope of regulation of this Law, the Agency shall begin the review of the notification on concentration after the submission of the document confirming the payment of the fee for review of the notification on concentration.

6. In the case provided for by paragraph 5 of this Article, the Agency shall be obliged to review the said notification no later than 25 working days from the submission of the document confirming the payment of the fee for review of the notification on concentration and to adopt one of the following decisions:

a) on the compatibility of the planned concentration with the competitive environment;

b) on the extension of the term for review of the notification on concentration, if there is reasonable doubt that the planned concentration may not be compatible with the competitive environment, or if, due to the complexity of the case, additional study of the relevant issue is necessary.

7. Failure by the Agency to adopt one of the decisions within the term provided for by paragraph 6 of this Article shall be considered a positive response.

8. In the case provided for by paragraph 6 of this Article, the Agency shall publish on its official website information on the ongoing administrative proceedings and shall give the interested person the opportunity to submit their own opinions within the term determined by the Agency. When publishing the said information, the confidentiality of data on the persons participating in the concentration shall be protected. At the same time, this information shall contain data on the identity/name of the parties, the subject of the concentration and the field of economy/market to which the planned concentration relates.

9. In the case of the adoption of the decision provided for by subparagraph „b“ of paragraph 6 of this Article, the Agency shall be obliged to review the notification on concentration no later than 90 calendar days from the adoption of the decision on the extension of the term for review of the notification on concentration. Failure by the Agency to respond to the said notification within this term shall be considered a positive response.

10. The Agency shall be entitled to require the person(s) submitting the notification on concentration to submit additional information and to set a new deadline for its submission, which shall constitute grounds for the suspension of the deadlines provided for by paragraphs 6 and 9 of this Article.

11. Before the expiry of the deadlines provided for by paragraphs 6 and 9 of this Article or before the adoption of the relevant decision by the Agency, the implementation of the concentration shall be prohibited.

12. In the event of the adoption of a negative decision by the Agency, the implementation of the concentration shall be prohibited.

13. In the event of failure to submit a notification on concentration in accordance with paragraph 1 of this Article, the imposition of a fine shall not release the party/parties to the concentration from the obligation to submit the said notification to the Agency. The Agency, together with the imposition of a fine on the party/parties to the concentration, shall set a deadline for the submission of this notification, which shall not be less than 14 calendar days.

14. Notwithstanding the adoption of a negative decision by the Agency, where the party/parties to the concentration implement the concentration and/or in the case provided for by paragraph 11 or 13 of this Article, when, as a result of the consideration of the notification on concentration, the Agency adopts a negative decision, the Agency, together with the imposition of a fine on the party/parties to the concentration, shall submit to the court a motion for the unwinding of the concentration in order to restore the initial situation. To achieve this aim, the party/parties to the concentration may be imposed with various obligations, including the obligations to divest an enterprise, a share, assets, securities or a part thereof, to carry out reorganisation, to terminate a specific contract. At the same time, the party/parties to the concentration shall be set a deadline for the fulfilment of the imposed obligations.

Law of Georgia No. 2159 of 21 March 2014 – website, 27.03.2014.

Law of Georgia No. 7126 of 16 September 2020 – website, 21.09.2020.

Law of Georgia No. 3754 of 29 November 2023 – website, 11.12.2023.

Article 11². Exemption from the obligation to submit a notification on concentration🔗

1. In the case of implementation of a concentration, the obligation to submit a notification on concentration to the Agency does not arise if:

a) the concentration results from insolvency and is carried out in accordance with the procedures defined by the Law of Georgia “On Rehabilitation and Collective Satisfaction of Creditors”, as well as in the process of liquidation, except where in this process control is acquired by a competitor enterprise of the insolvent enterprise or the group to which the competitors of the insolvent enterprise belong;

b) control is acquired temporarily, on the condition that the rights acquired through holding a share (including the voting right) are not exercised, except for the rights to receive information, to sell the share/stocks and to receive dividends, and, in the case of securing a loan, the right to acquire ownership;

c) the concentration concerns interdependent persons.

2. If all parties to the concentration are economic agents of one regulated sphere of the economy, the notification on concentration shall be submitted to the regulatory body of the said regulated sphere of the economy, taking into account the grounds for exemption from the obligation to submit a notification on concentration defined by this article.

3. For the purposes of this article, the regulated spheres of the economy falling within the competence of one regulatory body shall be considered as one regulated sphere of the economy.

Law of Georgia No. 2159 of 21 March 2014 – website, 27.03.2014.

Law of Georgia No. 7126 of 16 September 2020 – website, 21.09.2020.

Law of Georgia No. 7167 of 18 September 2020 – website, 25.09.2020.

Law of Georgia No. 3754 of 29 November 2023 – website, 11.12.2023.

Article 11³. Prohibition of unfair actions of economic agents🔗

1. Unfair competition is inadmissible.

2. For the purposes of this article, unfair competition shall be deemed to be such action of an economic agent as contradicts the norms of business ethics and infringes the interests of a competitor and a consumer, for example:

a) transmission, by any means of communication (including through improper, unfair, unreliable or clearly false advertising), of such information about goods and/or services as creates an incorrect impression for the consumer and induces them to a certain economic action;

b) concealment by an economic agent of the true purpose of a transaction in order to mislead a party and thereby obtain an advantage in competition;

c) damage by an economic agent to the reputation of a competitor (creation of an incorrect impression about an enterprise, products, entrepreneurial activity and commercial activity), its unfounded criticism or discrediting;

d) appropriation of the form, packaging or external appearance of the goods of a competitor or a third person;

e) receipt, acquisition, use or dissemination of scientific-technical, production or commercial information or commercial secrets without the consent of its owner;

f) bribery of a purchaser, a supplier, their employee or a person having the authority to make a decision, so that they act contrary to the interests of the employer or disregard the interests of the consumer;

g) call for a boycott.

Law of Georgia of 21 March 2014 No. 2159 – website, 27.03.2014.

Law of Georgia of 16 September 2020 No. 7126 – website, 21.09.2020.

Law of Georgia of 29 November 2023 No. 3754 – website, 11.12.2023.

Article 12. State aid🔗

1. State aid which impedes competition or creates the risk of impeding it shall be prohibited, except for the exceptions provided for by paragraph 2 of this Article.

2. State aid which does not require agreement with the Agency may be permitted if it:

a) is granted to an individual consumer in the form of social assistance, provided that the aid does not cause discrimination against the producer of the relevant goods/services;

b) aims to eliminate the consequences of a natural disaster or a force majeure circumstance;

c) aims to implement an environmental measure;

d) aims to exercise a right or perform an obligation provided for by a legislative act of Georgia or an international agreement of Georgia;

e) is granted in the form of individual State aid, in an insignificant amount. The insignificant amount of individual State aid shall be determined by a Resolution of the Government of Georgia;

f) aims to implement a significant State project, if a decision has been adopted by the Government of Georgia in this regard.

3. By agreement with the Agency, State aid may be permitted which does not significantly restrict competition or does not create the risk of significantly restricting it and which is granted:

a) for the economic development of certain regions;

b) for the promotion of culture and the preservation of cultural heritage.

Law of Georgia No. 2159 of 21 March 2014 – website, 27.03.2014.

Law of Georgia No. 7126 of 16 September 2020 – website, 21.09.2020.

Article 13. Rule and procedures of agreement with the State Aid Agency🔗

1. The rule of agreement with the State Aid Agency provided for by paragraph 3 of Article 12 of this Law shall be approved by a Resolution of the Government of Georgia.

2. On the basis of the rule of agreement with the State Aid Agency provided for by paragraph 1 of this Article, the state aid granting body shall submit to the Agency an application containing information on the purpose of granting the state aid, the form and amount of the state aid and the recipient economic agent.

3. The state aid granting body shall submit to the Agency, together with the application provided for by paragraph 2 of this Article, substantiation that the state aid to be granted does not substantially restrict competition.

4. The Agency, on the basis of the application (information) submitted to it, shall verify the compliance of the state aid to be granted with the provisions of this Law and shall issue the relevant conclusion no later than 30 working days. Taking into account the volume and complexity of the case, this term may be extended up to 3 months. Failure by the Agency to issue a conclusion within the established term shall be considered as consent.

5. The Agency shall be entitled to require the state aid granting body and/or the recipient economic agent to submit additional information, which is grounds for suspension of the term provided for by paragraph 4 of this Article.

6. The Agency shall submit the conclusion provided for by paragraph 4 of this Article to the state aid granting body and to the Government of Georgia.

7. The Government of Georgia, to which the Agency's negative conclusion has been submitted, shall take a decision on the relevant issue.

Law of Georgia of 21 March 2014 No. 2159 – website, 27.03.2014.

Law of Georgia of 15 July 2020 No. 6893 – website, 28.07.2020.

Law of Georgia of 16 September 2020 No. 7126 – website, 21.09.2020.

Article 14. De minimis amount of individual state aid🔗

1. The de minimis amount of individual state aid, which does not require agreement with the Agency, shall be determined by a Resolution of the Government of Georgia.

2. The body granting de minimis individual state aid shall be obliged, annually, before 1 February of the year following the reporting year, to provide the Agency with information on the amount of the granted de minimis individual state aid, the period of granting and the recipient economic agent/economic agents.

3. The Agency shall ensure the entry of the information received in accordance with paragraph 2 of this Article into the register of de minimis individual state aids.

4. If, in the process of maintaining the register of de minimis individual state aids provided for by paragraph 3 of this Article, the Agency determines that the amount of the granted individual state aid exceeds the de minimis amount of individual state aid determined by the legislation of Georgia, it shall prepare an appropriate conclusion and send it both to the body granting the state aid and to its superior body (if any).

Law of Georgia of 21 March 2014 No. 2159 – website, 27.03.2014.

Law of Georgia of 16 September 2020 No. 7126 – website, 21.09.2020.

Article 15. Appealing against granted state aid🔗

If the granted state aid significantly restricts competition in the relevant market and/or the legislation of Georgia in the field of competition is violated in relation to the procedure for granting state aid, a person who has directly suffered damage may appeal the granted state aid in court.

Article 16. Authorized body and its organization🔗

1. For the implementation of competition policy, an agency shall be established.

2. The goals, tasks, functions and powers of the Agency, as well as the relevant organizational issues, shall be determined by this Law, the Law of Georgia "On the Introduction of Anti-Dumping Measures in Trade", the Law of Georgia "On Consumer Rights Protection", the Law of Georgia "On Electronic Commerce" and the Agency's statute.

3. The Agency shall be accountable to the Parliament of Georgia and the Prime Minister of Georgia.

4. The main task of the Agency is the implementation of competition policy, the creation and protection of conditions for the promotion of competition development in Georgia, as well as, for this purpose, the inadmissibility, detection and suppression of all types of anti-competitive agreements and actions.

4¹. The Agency shall also implement the policy of protecting local industry in Georgia from dumped imports, in particular, in accordance with the Law of Georgia "On the Introduction of Anti-Dumping Measures in Trade", in order to prevent damage to local industry as a result of dumped imports of products into the customs territory of Georgia, the Agency shall conduct a study and submit an appropriate conclusion to the Government of Georgia.

4². In accordance with the Law of Georgia "On Consumer Rights Protection", the Agency shall also protect the rights and legitimate interests of consumers in the territory of Georgia, prevent violations of their rights and promote the restoration of violated rights, detect facts of violations of consumer rights and respond appropriately to violations as provided by law.

4³. The Agency shall also protect the rights and legitimate interests of recipients of services as defined by the Law of Georgia "On Electronic Commerce" in the territory of Georgia, prevent violations of their rights and promote the restoration of violated rights, detect facts of violations of the rights of recipients of services and respond appropriately to violations as provided by law.

5. The implementation of the Agency's decisions, instructions and other legal acts shall be mandatory for state authorities, authorities of the Autonomous Republic, municipal bodies, other administrative bodies and economic agents.

6. In carrying out its activities, the Agency shall be guided by the Constitution of Georgia, international treaties of Georgia, this Law, the Law of Georgia "On the Introduction of Anti-Dumping Measures in Trade", the Law of Georgia "On Consumer Rights Protection", the Law of Georgia "On Electronic Commerce", the Agency's statute and other legal acts, and shall be responsible for the performance of its own tasks and functions.

7. (Removed – 16 September 2020, No. 7126).

8. The sources of funding of the Agency are the state budget of Georgia and other revenues provided by the legislation of Georgia.

9. The Agency shall, not later than 1 May of each year, prepare and submit to the Parliament of Georgia, the Prime Minister of Georgia and the public an annual report on the work carried out in the previous year.

10. The Agency is independent in the process of carrying out its activities and taking decisions.

Law of Georgia No. 2159 of 21 March 2014 – website, 27 March 2014

Law of Georgia No. 6750 of 13 July 2020 – website, 21 July 2020

Law of Georgia No. 6893 of 15 July 2020 – website, 28 July 2020

Law of Georgia No. 7126 of 16 September 2020 – website, 21 September 2020

Law of Georgia No. 524 of 28 May 2021 – website, 28 May 2021

Law of Georgia No. 1457 of 29 March 2022 – website, 6 April 2022

Law of Georgia No. 3111 of 13 June 2023 – website, 30 June 2023

Law of Georgia No. 3754 of 29 November 2023 – website, 11 December 2023

Article 17. Principles of the Agency's activities🔗

1. The principles of the Agency's activities are: independence, non-discrimination, impartiality, transparency and accountability.

2. In order to ensure the transparency of the Agency's activities, its decision shall be public.

Article 17¹. Chairperson of the Agency🔗

1. The Chairperson of the Agency shall be appointed and dismissed by the Prime Minister of Georgia.

2. The Chairperson of the Agency shall independently take decisions on matters within the competence of the Agency, act on behalf of the Agency, represent it in relations with other bodies and organisations, and resolve matters determined by the tasks, functions and powers of the Agency.

3. The Chairperson of the Agency shall determine the powers of the Deputy Chairpersons of the Agency, the structural subdivisions of the Agency's central office and the representatives in the regions.

4. The Chairperson of the Agency shall, within the scope of his/her competence, issue normative and individual legal acts (orders, instructions and methodological guidelines) in the manner established by the legislation of Georgia.

5. A person who meets the following requirements shall be appointed as the Chairperson of the Agency:

a) is a citizen of Georgia;

b) holds a master's degree in economics, law or business administration, or a degree equivalent thereto;

c) has at least 10 years of work experience in the speciality;

d) meets other requirements established by the legislation of Georgia.

6. The powers of the Chairperson of the Agency shall be terminated on the basis of a personal application or in other cases provided for by the legislation of Georgia.

Law of Georgia No. 2159 of 21 March 2014 – website, 27 March 2014

Article 17². Functions of the Agency🔗

The functions of the Agency are:

a) implementation of the policy defined by the legislation of Georgia on competition and, to that end, preparation of proposals for the development and improvement of the application of the relevant normative acts;

b) monitoring of the markets of goods and services of Georgia in order to study the situation existing in those markets and to assess the competitive environment;

c) in the case of a concentration provided for by Articles 11 and 11¹ of this Law, the mandatory assessment of the competitive effect, and the preparation and adoption of the relevant decision;

d) control over compliance with the legislation of Georgia on competition, identification and examination of the facts of violation of that legislation, and adoption of the relevant decision within the scope of its competence;

d¹) performance of the functions defined by the Law of Georgia “On the Introduction of Anti-Dumping Measures in Trade”;

e) monitoring of the implementation of the decisions adopted and the recommendations issued;

f) cooperation with international organisations and with the authorities of other countries empowered to protect competition policy;

g) cooperation with the bodies of the legislative and executive authorities of Georgia and with international organisations for the purpose of improving the legislation of Georgia on competition and competition policy, as well as resolving problems of organisational-legal, technical and financial support;

h) raising public awareness of the goals and objectives of the legislation of Georgia on competition and competition policy, and ensuring the publicity of the Agency's activities;

h¹) performance of the functions defined by the Law of Georgia “On the Protection of Consumer Rights”;

h²) performance of the functions defined by the Law of Georgia “On Electronic Commerce”;

i) performance of other functions provided for by the statute of the Agency.

Law of Georgia of 21 March 2014 No. 2159 – website, 27.03.2014.

Law of Georgia of 13 July 2020 No. 6750 – website, 21.07.2020.

Law of Georgia of 16 September 2020 No. 7126 – website, 21.09.2020.

Law of Georgia of 29 March 2022 No. 1457 – website, 06.04.2022.

Law of Georgia of 13 June 2023 No. 3111 – website, 30.06.2023.

Article 18. Powers of the Agency🔗

1. In relation to an economic agent, the Agency shall be authorised to:

a) conduct an investigation of a case on the basis of a submitted complaint or on its own initiative;

b) require an economic agent/a party/an interested party to submit any information/documentation (including confidential information) on its activity and/or a specific operation, which is necessary for the exercise by the Agency of the relevant power;

c) in the event of failure by an economic agent/a party/an interested party to provide the requested information/documentation, submit to the court a motion for the recovery of information/documentation from the economic agent/the party/the interested party in the process of the exercise of the relevant power;

d) in the process of the exercise of the relevant power, require a party/an interested party to appear for explanations;

e) on the basis of a court judgment, conduct an on-site inspection of the relevant economic agent;

f) in the event of failure to provide the requested information within the established time limit, impose a fine on the economic agent/the party/the interested party in accordance with Article 32 of this Law;

g) require an economic agent to ensure that the action performed complies with this Law;

g¹) give consent to or refuse the acceptance of a conditional obligation offered by an economic agent regarding the performance of a specific action to be carried out for the purpose of eliminating an alleged violation of the law;

g²) submit binding recommendations to an economic agent for consideration;

h) in the event of a violation of the requirements of this Law, impose the relevant fine in accordance with Article 33 of this Law;

i) if necessary, invite experts in the process of the investigation of a case;

j) (removed – 16.09.2020, No. 7126);

k) in the event of repeated violations of this Law by an economic agent holding a dominant position, raise before the court the issue of its compulsory division, if the division of the economic agent (organisational and territorial separation of the enterprise) is possible;

k¹) give consent to or refuse a measure of a structural and/or behavioural nature offered by a party/parties to a concentration;

k²) submit to the court a motion for the unwinding of a concentration for the purpose of restoring the initial situation;

l) raise before the relevant bodies the issue of the liability of the head person of an economic agent that violates the legislation of Georgia;

m) apply to the court with a motion for the temporary suspension of a certain action of an economic agent until the Agency adopts a final decision, if there is clear evidence that this action significantly restricts competition provided for by Articles 6 and 7 of this Law.

n) in the event of a reasoned request by an economic agent, adopt a decision on the distribution of the fine imposed on it over a period of not more than 1 year.

2. In relation to a state authority, an authority of an autonomous republic, a municipal body or another administrative body, the Agency is entitled to:

a) in connection with an alleged violation of Article 10 of this Law, conduct an investigation of the case on the basis of a submitted complaint or on its own initiative;

b) require the said body to submit the relevant information/documentation necessary for the exercise by the Agency of the relevant powers, and in the event of failure to comply with this request, raise the question of the disciplinary liability of its authorised person;

c) in the event of a violation of this Law, submit to the said body a reasoned decision and a relevant recommendation concerning a decision taken by this body that is contrary to the Law or an action performed that is contrary to the Law, including to require the annulment of this decision or the prohibition of the action, and in the event of failure to comply with the said request, raise the relevant matter for consideration before a superior body or official;

d) in the event of a violation by a body granting state aid of the rule of agreement with the State Aid Agency, raise before a superior body or official the question of the liability of the relevant authorised person;

e) submit to the said body for consideration mandatory recommendations on the improvement of the competitive environment in the goods and services markets of Georgia, on the existence of legislative barriers and/or administrative barriers to entry into the relevant market and the need to eliminate them;

f) on the basis of the Tax Code of Georgia, request and receive from the tax authority identified information on individual taxpayers;

g) where necessary, request the receipt of relevant consultation for the exercise of its powers;

h) within the scope of an investigation of a case conducted in connection with an alleged violation of Article 10 of this Law, require the said body to appear for explanations;

i) in accordance with the procedure established by the Organic Law of Georgia “On the National Bank of Georgia”, apply to the National Bank of Georgia for the purpose of requesting and receiving from a subject subordinate to its supervision information (including confidential information) necessary for the Agency to perform its functions.

3. The Agency is entitled, within the scope of its competence, to issue a recommendatory explanation and to provide consultation to an interested person on the application of the legislation of Georgia on competition.

4. The Agency is entitled to exercise other powers conferred on it by the legislation of Georgia, including the Law of Georgia “On the Introduction of Anti-Dumping Measures in Trade”, the Law of Georgia “On Consumer Rights Protection”, the Law of Georgia “On Electronic Commerce” and the Agency's statute.

Law of Georgia of 21 March 2014 No. 2159 – website, 27.03.2014.

Law of Georgia No. 6750 of 13 July 2020 – website, 21.07.2020.

Law of Georgia No. 6893 of 15 July 2020 – website, 28.07.2020.

Law of Georgia No. 7126 of 16 September 2020 – website, 21.09.2020.

Law of Georgia No. 1457 of 29 March 2022 – website, 06.04.2022.

Law of Georgia No. 3111 of 13 June 2023 – website, 30.06.2023.

Law of Georgia No. 3754 of 29 November 2023 – website, 11.12.2023.

Article 19. (repealed)🔗

Law of Georgia No. 2159 of 21 March 2014 – website, 27.03.2014.

Article 20. Protection of confidentiality of information🔗

1. The Agency shall be obliged to:

a) protect the confidentiality of information on an economic agent, which, along with other secrets, may contain a commercial secret, a banking secret and/or a tax secret;

b) protect the confidentiality of the personal data of the person who is the information provider and applies to the Agency with a request to protect the confidentiality of his/her personal data;

c) ensure the protection and non-dissemination of state secrets.

2. It shall be inadmissible to disclose and disseminate confidential information, except in the exceptional cases established by the legislation of Georgia.

2¹. Recognition of information as a commercial secret shall be carried out in accordance with the procedure established by the General Administrative Code of Georgia. When considering the issue of recognising information submitted by an economic agent to the Agency as a commercial secret, the Agency shall be entitled to require it to submit a non-confidential version of the document containing the said information (redacted for the purpose of covering confidential data) and to set a relevant time limit.

2². Data on the person(s) participating in the cooperation programme provided for by Article 33¹ of this Law and the information/documentation submitted by the said person(s) to the Agency shall be confidential until the Agency adopts a final decision as a result of the investigation of the case. At the same time, after the completion of the investigation of the case, the regime of protection of confidentiality of information provided for by this Article shall apply to the said information/documentation.

3. It shall be inadmissible for employees of the Agency to use and disseminate confidential information, including for the purpose of carrying out personal, academic, scientific and other activities.

4. Violation of the provisions of this Article by employees of the Agency shall entail liability determined by a subordinate normative act.

5. Generalised information on the relevant market, as well as data on the number of economic agents, received income and incurred expenses, may not be confidential.

Law of Georgia No. 7126 of 16 September 2020 – website, 21.09.2020.

Law of Georgia No. 3754 of 29 November 2023 – website, 11.12.2023.

Article 20¹. Rule and procedure for the delivery of correspondence🔗

1. The Agency shall send and/or present a document to a person in written or electronic form.

2. The Agency shall choose the form of sending and/or presenting the document to the person.

3. In the event of presenting one document to a person several times or in several forms, the date of its first delivery shall be considered the date of delivery of this document.

4. When presenting a document to a person in written form, in the event of a statement by this person refusing its delivery, the person presenting the document shall make a corresponding note.

5. A document may be sent to a person by post and/or electronic mail.

6. A document sent to a person by electronic mail shall be considered delivered in the event of confirmation of its receipt by the addressee.

7. The Agency's written document shall be delivered to the addressee, his/her representative, his/her family member or the administration of his/her workplace. For the purposes of this paragraph, the addressee's family members shall be considered close relatives permanently living with him/her, including: spouse, mother, father, sister, brother, grandmother, grandfather, adult child, adult grandchild, any other adult person (regardless of kinship with the addressee) who carries on common household activities together with him/her.

8. If, within 5 working days from the sending of the Agency's written document in accordance with the rule established by paragraph 5 of this article, the Agency is unable to deliver it to the addressee, the addressee refuses to accept delivery of the document or does not confirm its receipt by electronic mail, the Agency shall be entitled to send to the Legal Entity of Public Law − Revenue Service a request to upload the document on the authorised user page of the taxpayer, after which the Legal Entity of Public Law − Revenue Service shall ensure the sending of the document to the addressee through the taxpayer's authorised user page. In this case, the document shall be considered delivered from the moment of its opening by the addressee.

9. If a party was not delivered the Agency's decision and/or order in accordance with the rule established by paragraphs 5−8 of this article, this decision and/or order shall be considered delivered to the party on the 60th day from its publication on the Agency's official website.

Law of Georgia of 29 November 2023 No. 3754 – website, 11.12.2023.

Article 21. Conflict of interest🔗

1. An authorized person of the Agency shall be independent from the parties/interested parties in the course of professional activity, when conducting an assessment and when making a decision.

2. If there exist relations provided for by Article 19 of the Tax Code of Georgia or Article 92 of the General Administrative Code of Georgia between an authorized person of the Agency and the economic agent in respect of whom the Agency is conducting an investigation of the case, the authorized person of the Agency shall immediately declare the conflict of interest.

3. An authorized person of the Agency shall not carry out any other activity that may influence his/her impartiality and the independence of the decision made by him/her.

4. The Agency

failure by an authorized person to fulfil the obligation provided for by paragraph 2 of this Article shall entail liability determined by a subordinate normative act.

5. A person whose case is being considered shall be entitled to challenge the relevant authorized person of the Agency if that person is interested in the matter under consideration.

Law of Georgia No. 2159 of 21 March 2014 - website, 27.03.2014.

Law of Georgia No. 7126 of 16 September 2020 – website, 21.09.2020.

Article 22. Persons entitled to submit an application and/or a complaint🔗

1. An applicant shall have the right to submit an application to the Agency. The applicant shall not be considered a party. The Agency shall accept for information an application submitted to it regarding an alleged violation of the law and, in the event of reasonable doubt, it may use it to start an investigation on its own initiative.

2. A complainant shall have the right to submit a complaint to the Agency. He/she shall submit evidence to the Agency together with the complaint. The complainant shall be considered a party and shall bear the burden of proof.

Law of Georgia No. 7126 of 16 September 2020 – website, 21.09.2020.

Article 23. Procedure for receiving a complaint by the Agency and exercise of the right of defence by the respondent economic agent🔗

1. After receiving a complaint, the Agency shall, within the time limit established by the legislation of Georgia, examine the question of the admissibility of the complaint.

2. The Agency shall be obliged to send the complaint submitted to it to the respondent economic agent, except for a complaint concerning an alleged violation of Article 7 of this Law. The respondent economic agent shall be entitled, within the time limit determined by the Agency, to submit its own opinions on the complaint.

3. If the respondent economic agent submits to the Agency its own opinions on the complaint, the Agency shall adopt a decision on the investigation of the case on the basis of the information provided by the complainant and the respondent economic agent, within the time limit established by the legislation of Georgia.

4. The Agency shall notify the complainant and the respondent economic agent of the commencement of the investigation of the case on the basis of the complaint or of the refusal to commence the investigation of the case on the basis of the complaint. The Agency shall have the right to require the complainant to submit additional information and/or evidence and to set a time limit for its submission, which shall be grounds for suspending the time limit provided for by paragraph 1 of this Article.

5. At the stage of examining the question of the admissibility of the complaint, the respondent economic agent shall be entitled to propose to the Agency the acceptance of a conditional obligation on the performance of a specific action to be carried out for the purpose of eliminating the alleged violation of the law.

6. If the Agency considers that, as a result of the fulfilment of the conditional obligation assumed by the respondent agent, reasonable doubt as to the violation of the law no longer arises, and it consents to the acceptance of the conditional obligation proposed by the party, the Agency shall refuse to commence the investigation of the case on the basis of the complaint and shall set a time limit for the respondent party to fulfil the conditional obligation.

7. If the respondent economic agent fails, within the time limit determined by the Agency, to fulfil the conditional obligation in the manner determined by it, the examination of the question of the admissibility of the complaint shall be resumed and the counting of the time limit provided for by paragraph 1 of this Article shall start anew.

8. The form of the complaint, the procedure for its submission and the procedures and time limits related to the admissibility of the complaint shall be determined and the corresponding act shall be adopted by the Agency.

Law of Georgia No. 2159 of 21 March 2014 – website, 27.03.2014

Law of Georgia No. 7126 of 16 September 2020 – website, 21.09.2020

Article 24. Grounds for the Agency's refusal to start a case investigation on the basis of a complaint🔗

The Agency refuses to start a case investigation on the basis of a complaint if:

a) the complaint has not been submitted to an authorized person;

b) there is no legal ground provided by this Law;

c) the additional information and/or evidence requested in accordance with paragraph 4 of Article 23 of this Law has not been submitted within the established time limit;

d) insolvency proceedings have been initiated against the respondent economic agent;

e) as a result of a case investigation the Agency has adopted a decision on the same subject of dispute between the same parties and there is no newly discovered circumstance;

f) the Agency has adopted a decision on refusal to declare the complaint admissible on the same subject of dispute between the same parties and there is no newly discovered circumstance, except for a decision on refusal to declare the complaint admissible on the ground provided by subparagraph „c“ of this Article;

g) a case is in court proceedings concerning a dispute between the same parties, on the same subject of dispute and on the same ground, or there is a court judgment or ruling on the same subject of dispute concerning the claimant's withdrawal of the claim, the defendant's acknowledgement of the claim or approval of the parties' settlement;

h) when examining the issue of admissibility of the complaint, the Agency agrees to accept the conditional obligation offered by the economic agent regarding the performance of a specific action to be carried out for the purpose of eliminating the alleged violation of the law.

Law of Georgia of 21 March 2014 No. 2159 – website, 27.03.2014.

Law of Georgia of 16 September 2020 No. 7126 – website, 21.09.2020.

Law of Georgia of 29 November 2023 No. 3754 – website, 11.12.2023.

Article 25. Rule for case investigation🔗

1. After adopting a decision on the commencement of the case investigation, the Agency shall commence the case investigation and shall adopt the relevant decision no later than 6 months.

2. The case investigation, taking into account its importance and complexity, may be extended by a decision of the Agency for up to 18 months.

3. The Agency shall notify the parties, before the expiry of the deadline for adopting the relevant decision, no later than 10 working days, of the extension of the case investigation period.

4. The Agency shall be entitled, where necessary, in the course of the case investigation, to require the economic agent/party/interested party to submit the information and documentation necessary for the case investigation.

5. In the course of the case investigation, the Agency shall summon the party/interested party in order to receive explanations.

6. The Agency shall be entitled, on the basis of a court judgment, to inspect the relevant economic agent on site.

7. The Agency shall be entitled to submit to the court a relevant reasoned motion for the purpose of the on-site inspection of the economic agent provided for by paragraph 6 of this Article, if:

a) in the case provided for by paragraph 4 of this Article, it is impossible to obtain the information and documentation necessary for the case investigation;

b) there is a risk of concealment and/or destruction of information related to the case;

c) the parties fail to fulfil the obligation to submit information and documentation;

d) it is necessary to examine the material assets of the economic agent.

8. The on-site inspection of the economic agent provided for by paragraph 7 of this Article includes:

a) review of documents related to the activity of the economic agent, including financial and economic documents, regardless of their confidentiality and storage rules;

b) making copies of the documents provided for by subparagraph „a“ of this paragraph;

c) receiving explanations on site;

d) on-site admission to the legal and actual activities of the economic agent.

8¹. In the event of non-admission of authorised persons to the site during the on-site inspection provided for by paragraph 8 of this Article and/or obstruction of the inspection process, the economic agent shall be fined in accordance with Article 33 of this Law.

8². Where necessary, taking into account the need for knowledge of the relevant specifics and/or information-technology support, representatives of law enforcement bodies and/or other state agencies may participate in the on-site inspection process.

9. If, after the commencement of the case investigation and before the draft relevant decision is sent to the parties, the complainant withdraws the complaint, the case investigation shall be terminated, except where there is substantiated evidence that competition is significantly restricted.

10. Before the Agency adopts a final decision, a summary hearing shall be held so that the applicant and the party are given the opportunity to present their positions.

11. Before holding the summary hearing, the Agency shall send to the applicant and the party in writing the draft of the Agency's final decision and the case materials. At the same time, the applicant and the party shall be explained that they have the right to present their positions and the relevant additional information (evidence).

12. In the case provided for by paragraph 11 of this Article, the time limit set for the applicant and the party to present their positions shall not be less than 25 working days. The Agency may not take into account information submitted after the expiry of this time limit when adopting the final decision.

13. Before the adoption of the draft of the Agency's final decision, the respondent economic agent shall be entitled to propose to the Agency the assumption of a conditional obligation on the performance of a specific action to be performed for the purpose of eliminating the presumed violation of the law.

14. If the Agency considers that as a result of the fulfilment of the conditional obligation assumed by the respondent economic agent the risk of the presumed violation of the law will no longer exist, and accepts the conditional obligation assumed by it on the performance of a specific action to be performed for the purpose of eliminating the presumed violation of the law, the Agency shall adopt the final decision without assessing the fact of the presumed violation of the law and shall set a time limit for the respondent economic agent to fulfil the assumed conditional obligation.

15. If the respondent economic agent fails to fulfil, within the time limit set by the Agency, the conditional obligation assumed by it as provided for by paragraph 14 of this Article, it shall be imposed a fine in accordance with Article 33 of this Law and the investigation of the case shall be resumed.

16. The rules and procedure for the investigation of a case shall be approved by a legal act of the Agency.

Law of Georgia No. 2159 of 21 March 2014 – website, 27.03.2014.

Law of Georgia No. 7126 of 16 September 2020 – website, 21.09.2020.

Law of Georgia No. 3754 of 29 November 2023 – website, 11.12.2023.

Article 26. (repealed)🔗

Law of Georgia No. 2159 of 21 March 2014 – website, 27.03.2014.

Article 27. Limitation period for the examination of a case🔗

1. The limitation period for the examination of a case concerning a violation of this Law shall be 3 years from the completion of the relevant action.

2. The commencement of the investigation of a case concerning a violation of this Law shall be grounds for suspending the running of the limitation period for the examination of that case.

Law of Georgia No. 7126 of 16 September 2020 – website, 21.09.2020.

Article 28. Competent court🔗

1. A person shall have the right to apply to a court concerning a violation of this Law without applying to the Agency.

2. A dispute concerning a violation of this Law shall be considered by Tbilisi City Court.

3. The commencement of insolvency proceedings in court against a respondent economic agent shall be grounds for the court specified in paragraph 2 of this Article to refuse to consider the case or to terminate it for a violation of this Law.

Article 29. (repealed)🔗

Law of Georgia No. 2159 of 21 March 2014 – website, 27.03.2014.

Article 30. Cooperation in the regulated sector of the economy for the examination and prevention of cases of violation of competition🔗

The Agency and the respective regulatory authority of the regulated sector of the economy shall cooperate for the examination and prevention of cases of violation of competition in the regulated sector of the economy.

Law of Georgia No. 1586 of 20 November 2013 – website, 3 December 2013.

Law of Georgia No. 2159 of 21 March 2014 – website, 27 March 2014.

Article 31. Forms of cooperation. Application of the provisions of this Law by the regulatory body of a regulated sphere of the economy🔗

1. A complaint/application on a possible violation of competition in a regulated sphere of the economy or a notification on concentration shall be submitted to the regulatory body of the regulated sphere of the economy or to the Agency. If a complaint/application on a possible violation of competition in a regulated sphere of the economy or a notification on concentration is submitted to the Agency, it shall send this complaint/application or notification to the regulatory body of the regulated sphere of the economy within 5 working days, except for the cases provided for by paragraph 2 of this Article.

2. The Agency shall examine the matter provided for by paragraph 1 of this Article if one of the following conditions exists:

a) the alleged violator of the Law or one of the parties to the concentration is not an economic agent of a regulated sphere of the economy;

b) the alleged violator of the Law and the parties to the concentration are economic agents of different regulated spheres of the economy;

c) the subject/subjects carrying out the alleged action contrary to the Law is/are an economic agent/economic agents of a regulated sphere of the economy, but this action (subject matter of the dispute) was not carried out in a regulated sphere of the economy.

3. If the body authorized to examine the matter cannot be determined, the time limit provided for by paragraph 1 of this Article shall be extended to 30 calendar days, in order for consultations to be held between the Agency and the regulatory body of the regulated sphere of the economy for the purpose of determining the relevant authorized body.

4. If, in the case provided for by paragraph 3 of this Article, the relevant authorized body cannot be determined, the matter shall be examined by the Agency.

5. If, in the case provided for by paragraph 2 or 4 of this Article, the Agency examines a fact of a possible violation of competition in a regulated sphere of the economy or a notification on concentration, it shall apply to the regulatory body of the regulated sphere of the economy with a request to participate in the examination of the matter and/or to present its own position.

6. If a fact of a possible violation of competition in a regulated sphere of the economy or a notification on concentration is examined by the regulatory body of the regulated sphere of the economy, it shall apply to the Agency with a request to participate in the examination of the matter and/or to present its own position.

7. When examining the matters provided for by this Law in a regulated sphere of the economy, the regulatory body of the regulated sphere of the economy shall be guided by Articles 3 and 6–9, paragraphs 1–8 of Article 11, paragraphs 1, 2, 4 and 6–12 of Article 11¹ and Articles 27, 33 and 33¹ of this Law, and shall apply subparagraph „i“ of Article 3, Article 5, paragraphs 13 and 14 of Article 11¹ and Articles 112, 18, 22–25 and 32 of this Law only if otherwise is not provided by the special legislation regulating the respective regulated sphere of the economy.

8. Issues provided for by the legal acts of the Agency adopted on the basis of this Law shall be regulated by the special legislation governing the respective regulated sphere of the economy.

9. For the purposes of paragraph 2 of this Article, the regulated spheres of the economy assigned to the competence of one regulatory body shall be considered as one regulated sphere of the economy.

10. This Article does not restrict the regulatory body of a regulated sphere of the economy from applying the provisions of the special legislation governing the respective regulated sphere of the economy where an operating asset of an economic agent is acquired, economic agents merge, or a direct or indirect share or stocks of an economic agent are acquired, and the said transactions do not fall within the scope of regulation of Article 11 of this Law.

Law of Georgia of 20 November 2013 No. 1586 – website, 03.12.2013.

Law of Georgia of 21 March 2014 No. 2159 – website, 27.03.2014.

Law of Georgia of 16 September 2020 No. 7126 – website, 21.09.2020.

Article 32. Failure to provide information to the Agency within the determined time limit, provision of incorrect or incomplete information🔗

1. Where the information requested by the Agency on the basis of this Law is not provided to it within the time limit determined by the Agency itself, or where incorrect or incomplete information is provided to the Agency, a legal entity shall be imposed a fine in the amount of GEL 3,000, and a natural person − in the amount of GEL 1,000.

2. Notwithstanding the imposition of a fine, in the event of failure to provide information to the Agency within the time limit determined by the Agency itself, a legal entity shall be imposed a fine in the amount of GEL 5,000, and a natural person − in the amount of GEL 3,000.

3. The imposition of a fine does not release a person from the obligation to provide information to the Agency.

Law of Georgia of 16 September 2020 No. 7126 – website, 21.09.2020.

Article 33. Fine🔗

1. In the case provided for by Article 6 or 7 of this Law, a fine shall be imposed on the party, the amount of which shall not exceed 5% of its total income during the previous financial year.

2. In the case of failure to eliminate the legal basis of the violation provided for by paragraph 1 of this Article or repetition of the said violation, a fine shall be imposed on the party, the amount of which shall not exceed 10% of its total income during the previous financial year.

3. In the case provided for by paragraph 9 of Article 11 of this Law, the Agency shall impose on the economic agent a fine, the amount of which shall not exceed 5% of the economic agent's average daily turnover during the financial year preceding the adoption of the relevant decision by the Agency for each day of delay. If the amount of the fine determined by this paragraph is imposed on a natural person or another person who is not considered an economic agent for the purposes of this Law, it shall not exceed GEL 500 for each day of delay.

4. In the case of violation of the requirement of paragraph 1, 11 or 12 of Article 11¹ of this Law, a fine shall be imposed on an economic agent having the obligation to submit a notification on concentration, the amount of which shall not exceed 5% of the economic agent's total income during the financial year preceding the adoption of the relevant decision by the Agency, and a natural person shall be fined in the amount of GEL 10,000.

5. In the case of confirmation of a violation provided for by Article 11³ of this Law, a fine shall be imposed on the economic agent, the amount of which shall not exceed 1% of the economic agent's total income during the financial year preceding the adoption of the relevant decision by the Agency, and in the case of failure to eliminate the legal basis of the said violation or repetition of this violation — 3% of the economic agent's total income during the financial year preceding the adoption of the relevant decision by the Agency.

6. In the case provided for by paragraph 15 of Article 25 of this Law, the Agency shall impose on the economic agent a fine, the amount of which shall not exceed 5% of the economic agent's average daily turnover during the financial year preceding the adoption of the relevant decision by the Agency for each day of delay.

6¹. In the case provided for by paragraph 8¹ of Article 25 of this Law, a fine in the amount of GEL 10,000 shall be imposed on the economic agent, and in case of repetition of the relevant violation — in the amount of GEL 20,000.

6². For the purposes of determining the amount of the fine in the case provided for by this Article, the combined income of the economic agent for the previous financial year means the combined income of the economic agent during the financial year preceding the adoption of the relevant decision by the Agency, and if the economic agent is registered in the year of adoption of the relevant decision by the Agency in accordance with the procedure established by the legislation of Georgia, the combined income means the combined income of the economic agent from its registration in accordance with the procedure established by the legislation of Georgia until the adoption of the final decision by the Agency.

7. When determining the amount of the fine defined by this Article, the damage caused by the relevant violation, the duration and gravity of the violation shall be taken into account.

8. In the case provided for by paragraph 3, 4 or 6 of this Article, the Agency shall examine the matter through the simplified administrative proceedings established by the General Administrative Code of Georgia for the adoption of an administrative-legal act, for which purpose it shall use the appropriate authority defined by Article 18 of this Law.

9. The person/party shall be obliged to pay the fine imposed in accordance with this Article to the State Budget of Georgia within 1 month from its imposition.

10. In the event of non-payment of the fine defined by this Article, it shall be enforced in accordance with the procedure established by the legislation of Georgia.

11. The body regulating the regulated sphere of the economy shall be entitled, along with the imposition of the fine defined by this Article, to apply other sanctions and/or supervisory measures provided for by the legislative acts regulating the respective regulated sphere of the economy.

Law of Georgia of 21 March 2014 No. 2159 – website, 27 March 2014.

Law of Georgia of 16 September 2020 No. 7126 – website, 21 September 2020.

Law of Georgia of 29 November 2023 No. 3754 – website, 11 December 2023.

Article 33¹. Cooperation Programme🔗

1. A person shall be fully or partially exempted from the imposition of a fine for a violation of this Law if he/she satisfies all of the following conditions:

a) acknowledges in writing participation in the agreement provided for by Article 7 of this Law;

b) submits to the Agency, orally and/or in writing, the information and evidence significant to the case and known to him/her concerning the agreement provided for by Article 7 of this Law before such information and evidence becomes known to the Agency from another source;

c) cooperates continuously and without restriction with the Agency in the course of the investigation of the case;

d) terminates participation in the unlawful agreement, except where the Agency considers that the continuation by the person of participation in this agreement will facilitate the investigation of the case;

e) does not destroy a document and evidence significant to the case;

f) does not disclose information on participation in the cooperation programme.

2. The benefit established by this Article shall not apply to the initiator of the agreement provided for by Article 7 of this Law, as well as to a person who coerced another person to participate in the said agreement.

3. The procedure for applying the cooperation programme to a person and for fully or partially exempting a person from the imposition of a fine for a violation of Article 7 of this Law shall be approved by a legal act of the Agency.

Law of Georgia of 21 March 2014 No. 2159 - website, 27.03.2014.

Law of Georgia of 16 September 2020 No. 7126 – website, 21.09.2020.

Law of Georgia of 29 November 2023 No. 3754 – website, 11.12.2023.

Article 33². Procedure for appealing a decision of the Agency🔗

1. A person shall be entitled to appeal a decision of the Agency to Tbilisi City Court.

2. The court shall be authorised to review fully the decision of the Agency, including in the part of the amount of the fine.

Law of Georgia of 21 March 2014 No. 2159 - website, 27.03.2014.

Law of Georgia of 16 September 2020 No. 7126 – website, 21.09.2020.

Article 34. Transitional and Final Provisions🔗

1. (deleted – 21.03.2014, No. 2159).

2. (deleted – 21.03.2014, No. 2159).

3. (deleted – 21.03.2014, No. 2159).

4. This Law shall not apply to state aid granted before the entry into force of this Law, and a change to the conditions of the said state aid shall not require agreement with the Agency.

5. By 15 April 2014, the Government of Georgia shall approve the statute and structure of the Agency, and the Prime Minister of Georgia shall appoint the Chairperson of the Agency.

6. By 1 September 2014, the Government of Georgia shall determine by Resolution the de minimis amount of individual state aid, the exceptions from the prohibition of competition-restricting contracts, and the general rules for granting state aid.

6¹. By 1 October 2014, the Agency shall develop and approve the respective legal acts provided for by this Law.

7. Upon the entry into force of this Law, the Law of Georgia of 3 June 2005 "On Free Trade and Competition" (Legislative Herald of Georgia, No. 31, 27.06.2005, Art. 188) shall be declared invalid.

8. Those powers of the Agency defined by this Law, for the exercise of which the approval/adoption of the legal acts provided for by this Law is necessary, shall fully enter into force upon the approval/adoption of the respective legal act.

9. This Law shall enter into force on the 60th day after publication.

Law of Georgia of 22 June 2012 No. 6544 – website, 04.07.2012.

Law of Georgia of 21 March 2014 No. 2159 – website, 27.03.2014.

President of Georgia M. Saakashvili

Tbilisi,

8 May 2012.

No. 6148-Is