Georgia’s Competition Agency Is a Reality

December 01, 2014

On 30 September 2014, the Law on Competition (the “Law”) came into force. It is based on the 8 May 2012 Law, which was amended on 21 March 2014. In late September 2014, bylaws were adopted by the Head of the Competition Agency of Georgia, which was established on 14 April 2014 by the Government of Georgia. The Competition Agency will be in charge of the implementation of competition policies in Georgia and will monitor anti-competitive behavior.

The Law, as recently amended, is strongly influenced by EU legislation and reflects concepts from contemporary EU rules and practices. The EU-oriented aspiration of the Law is not surprising. Under the Association Agreement between the EU and Georgia there is an explicit obligation for Georgia to maintain comprehensive competition laws and to establish a body with the authority to enforce competition rules.

The Law prohibits anticompetitive agreements and abuse of dominant position in Georgia. It further sets out a clear and detailed framework for merger regulations in Georgia.