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5 January 2018

Ukrainian competition agency published draft methodology of market definition

On 29 December 2017, the Antimonopoly Committee of Ukraine (the "AMC") published for comments and suggestions the draft methodology of market definition  outlining the definition to be applied when considering applications for approval of concentration, concerted practices; investigation of violations of legislation governing protection of economic competition. Its provisions are developed in accordance with EU legislation. 

It should be noted that currently, the AMC, when considering applications for approval of concentration, concerted practices; investigation of the violations of the legislation governing protection of economic competition, applies the methodology of determination of the monopoly (dominant) position of the undertakings on the market, approved by Order of the AMC dated 5 March 2002 No. 49-р.

In contrast to the existing methodology, the AMC suggests, in addition to analysis of the interchangeability of goods, application of hypothetical monopolist testing and the method of indicators of price flexibility of demand.

Moreover, in the draft methodology, the AMC sets out an approach providing for the calculation of market volume and market shares when granting approval for the concentration and investigating violations of legislation on the protection of economic competition in the form of implementation of the concentration without approval, in most cases, for each of the last two years preceding the submission of the application on the concentration.

If there are any questions on the draft methodology or if additional information on the consequences of its implementation is required, please contact Vladimir Sayenko, Oleksandr Nagorny or Valentyna Hvozd.

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