Cases were initiated against several state-owned enterprises

The Committee for the Development of Competition and Protection of Consumer Rights has taken appropriate measures against organizations that established enterprises with state participation without obtaining prior approval. This was reported following the Committee’s oversight activities.

During the 3rd quarter of 2024, seven violations were identified in the monitoring of compliance with laws requiring prior antimonopoly approval for the creation of state-owned enterprises and their affiliates. The monitoring aimed to reduce the state’s presence in the economy.

For instance, cases were initiated against several institutions, including the sports schools of the Andijan State Medical Institute, Karshi Institute of Engineering Economics, and Namangan Institute of Engineering and Technologies, as well as the administrations of the Mirzaabad district (Syrdarya region), Hazorasp district (Khorezm region), and Dangara district (Fergana region). These cases were based on violations of the Law "On Competition," Presidential Decree No. PF-6019, and Cabinet of Ministers Decision No. 346, which regulate the establishment of state-owned enterprises.

In response, it was decided that the creation of four of these enterprises could proceed as they did not negatively impact market competition. However, instructions were issued to prevent future violations, and the remaining three enterprises, which were established without proper approval, were ordered to be liquidated.

For reference, Article 24 of the Law "On Competition," by Decree No. PF-6019 and Cabinet of Ministers Decision No. 346, mandate that prior consent from the antimonopoly body must be obtained when establishing or reorganizing state-owned enterprises and their affiliates, as well as when changing the nature of their activities or acquiring shares.

Earlier, similar actions were taken in the Navoi region, where it was found that oil companies were attempting to manipulate stock exchange prices for highly liquid and monopolistic products, leading to legal action against them.