On Unfair Competition
Law of the Republic of Kazakhstan of June 9, 1998 # 232
Bulletin of the RK Parliament, 1998, #9-10, p. 84
CONTENTS
This Law shall define actions as unfair competition, set up mechanism to prevent and eliminate unfair competition and its consequences, as well as responsibility for unfair competitive actions.
Article 1. Basic Notions
This Law shall make use of the following notions:
Discredit shall mean willful action to deprive of confidence, to undermine and derogate reputation of the competitor, and goods, works and services thereof;
Competitor (in the market) shall mean a market entity performing with the capacities to decrease or increase market share of another market entity in the event of any changes in the performance;
Infringing Products shall mean products manufactured by certain market entities for the purpose of unfair competition and deceit of consumers;
Unfair Competition shall mean any action (or inaction) of a legal entity and/or individual, as well as state bodies and local authorities to get unjustified advantages in business by means of elimination or restriction of competition;
Agreement shall mean any agreement of the parties (vertical, horizontal, or conglomerated) to restrict or eliminate competition, to get unjustified advantages in business;
Market Entity shall mean a legal entity or an individual involved in business and acting as operator of goods, works, and services circulation;
Antimonopoly authority shall mean a governmental entity in charge of implementation of governmental policy to assist and develop competition, as well as prevent, restrict and stop unfair competition*.
Footnote. Article 1 is amended by RK Law of December 15, 2000, # 125; of December 20, 2004, # 139 in force since January 1, 2005); of July 7, 2006 # 174.
Article 2. Legislation on Unfair Competition
Article 3. Scope of this Law
This law shall cover individuals and legal entities, state bodies and local authorities of the Republic of Kazakhstan, as well as foreign individuals and legal entities and people without citizenship if actions thereof restrict or eliminate competition in the markets of goods (works, services) of the Republic of Kazakhstan*.
Footnote. Article 3 is edited as in RK Law of December 15, 2000, # 125.
Article 4. Impermissibility to Restrict or Eliminate Competition
Footnote. Article is amended by RK Law of December 15, 2002, # 125
Article 5. Types of Unfair Competition
Types of unfair competition shall be the following:
9-1) achieving advantages in competition by means of dumping prices;
10) other action (inaction) which brings to getting unjustified advantages in business by means of elimination or restriction of competition.*
Footnote. Article 5 is amended by RK Law of December 15, 2000, # 125; of July 7, 2006, # 174.
Article 5-1. Control of Compliance with Legislation of the Republic of Kazakhstan
on Unfair Competition
Regular control shall cover a range of issues related to compliance with legislation on unfair competition by inspected objects, and shall be performed not over twice a year.
Regular control can be held at the whereabouts of the inspected objects or structural subdivision thereof.
Action Plan of antimonopoly authority approved by the Chairman every year shall serve as the basis for regular control. The Plan should contain a list of inspected objects, as are planned for control and the period for such inspection.
Extraordinary control shall be control beyond the Action Plan of antimonopoly authority and shall be performed to verify information on violation of legislation of the Republic of Kazakhstan on unfair competition which has arrived to antimonopoly authority or was revealed on its own.
Instruction on control shall be made in two copies to be submitted to competent state body in charge of legal statistics and special accounts for registration. One copy with registration note shall be attached to the file.
A copy of instruction with a note on registration at the competent state body in charge of statistics and special accounts and a control schedule shall be delivered to the head of inspected object on the day of control.
A copy of instruction on control delivered to inspected object without note on registration at the competent state body in charge of legal statistics and special accounts shall be considered void.
Control can be performed only by the official (officials) stated in instruction.
For the purpose of control, the Head of antimonopoly authority shall issue an order on establishing a Working Group, approve members of the group and determine Chairman and Deputy Chairman of the Working Group.
In the event the inspected object refuses to accept instruction on control and impedes access of officials of antimonopoly authority in charge of control to information required for control, a protocol shall be made up.
The protocol shall be signed by antimonopoly official in charge of control and authorized persons of inspected object.
The authorized person of inspected object can refuse to sign a protocol upon a written justification of refusal.
Refusal from receiving instruction on control shall not be considered as basis to cancel control.
In the events when due to specifics of inspected object and significant scope of works the inspection can not be completed in the time period set by law, the official of antimonopoly authority in charge of control shall submit a memorandum to the Head of the authority which includes results of work and reasons to prolong control period.
The Head of Antimonopoly authority shall enjoy the right to issue order on prolonging inspection period. The Head of Antimonopoly authority shall introduce a note on prolonging inspection period to the inspection instruction and inspection plan.
Inspection period can not be prolonged over thirty calendar days.
A copy of Order to prolong inspection shall be delivered to the head of inspected object on the day of registration.
The completion of inspection period shall be a day when an inspected object receives statement of inspection results but not later the period of inspection completion stated in instruction.
In the event the head and officials of inspected object refuse to provide information, documents or copies upon verbal request of antimonopoly official in charge of inspection a relevant written request shall be delivered to them. If a written request can not be delivered to the head of inspected object it shall be delivered by mail addressed to the head of inspected object as a registered letter with notification.
A commercial secret required for implementation of the functions of antimonopoly authority can not serve as grounds to refuse to provide information.
8. Any information on inspected object received by antimonopoly authority during inspection shall not be disseminated except the events when this information is passed to another state body in compliance with laws of the Republic of Kazakhstan.
Antimonopoly authority shall enjoy the right to involve specialists of other state bodies of the Republic of Kazakhstan, as well as scientists and experts to inspection.
The officials of antimonopoly authority performing inspection shall be forbidden to require and apply requests with no relation to the subject of inspection.
The results of inspection shall be recorded in statement based on checked data and facts relying on relevant documents. The statements shall not contain any conclusions, proposals and data not proved by documents.
If the inspection does not detect any violations of legislation of the Republic of Kazakhstan on unfair competition a relevant entry shall be recorded in the statement.
If the head of inspected object has any comments and (or) objections he/she shall record them in written form
Comments and (or) objections on results of inspection can be attached to the statement with a relevant note.
If the Head of inspected object refuses to sign the statement on results of inspection an official of antimonopoly agency in charge of inspection shall record a relevant entry in the statement.
Second copy of the statement after completion of inspection by official of antimonopoly agency in charge of inspection shall be delivered to the head of inspected object.
If the statement can not be handed to the head of inspected object it shall be delivered by mail addressed to the head of inspected object as a registered letter with notification.
Footnote. The Law is supplemented with Article 5-1. – Law of the Republic of Kazakhstan of January 31, 2006 # 125; amended by RK Law of July 7, 2006 # 174.
Article 6. Responsibilities for Violation of This Law
Footnote. Article 6 in the reading of RK Law of December 15, 2000, # 125.
Article 7. Competence of Antimonopoly Authority
Footnote. Article 7 is amended by RK Law of December 15, 2000 # 125; of December 20, 2004, # 13 (in force since January 1, 2005); of July 7, 2006, # 174.
Article 7-1. Competence of Oblast (City of the Republican Status, Capital) Executive Authority in the Field of Antimonopoly Policy
(Excluded by RK Law of July 7, 2006, # 174).
Article 8. Seizure of Unlawful Income and Reimbursement of Losses Caused by Unfair Competition
Article 9. Complaints against Decisions, Instructions and Directions of the Authorized Entity
Legal entities and individual entrepreneurs, state bodies and local executives, as well as other stakeholders shall have the right to apply to court to fully or partially declare decisions, prescriptions and directions of the authorized entity void, or change decisions on administrative punishment.
President of the Republic of Kazakhstan