Competition Committee fines two additional companies

The Competition Committee has initiated proceedings against Orient Group Management LLC and Uzbek-Uman Investment Company LLC. This was officially reported by the Competition Committee.

It is noted that, according to Article 26 of the Law of the Republic of Uzbekistan "On Competition," if the balance sheet value of the assets of one of the parties to the transaction, or the income derived from the sale of goods in the last calendar year, exceeds 250,000 times the basic calculation amount (BCA), or if the combined balance sheet value of their assets or goods in the last calendar year exceeds 500,000 times the BCA, prior approval from the anti-monopoly body is required when an individual or group of individuals acquires the right to dispose of more than one-third of the shares in a limited liability company registered in the Republic of Uzbekistan.

However, it was revealed that on May 16 of this year, Orient Group Management LLC acquired a 45 percent stake in Highway Logistics Center LLC by increasing its authorized capital, without obtaining the necessary prior approval from the anti-monopoly authority.

In light of this, the Special Commission of the Committee initiated proceedings against Orient Group Management LLC, determining that the requirements of Article 26 of the Law "On Competition" were violated, and consequently, a decision was made to impose a financial penalty.

For reference, Orient Group Management LLC has filed a lawsuit contesting the decision of the Special Commission.

Furthermore, on July 23 of this year, Uzbek-Uman Investment Company LLC JV acquired a 45 percent stake from the authorized fund of Highway Logistics Center LLC, also without obtaining prior approval from the anti-monopoly body.

As a result, the Special Commission of the Committee initiated proceedings against Uzbek-Uman Investment Company LLC JV, determining that the requirements of Article 26 of the Law "On Competition" were violated, and a decision was made to impose a financial penalty.

It should be noted that the Competition Committee had previously issued a directive to all state and non-state television channels regarding compliance with advertising legislation.