Earlier this morning, 12 November 2015, the Parliament of Ukraine has voted for the three long-awaited draft laws that are called to significantly improve the competition regulation in the country. Based on the parliamentary voting, one draft law was approved today and is now on its way for President’s sign-off, while two other draft laws are being prepared for the second reading.
According to Draft Law 2102, the Antimonopoly Committee of Ukraine (AMC) is obliged to publish on its official web-site the following:
during 10 working days after the adoption of such decisions/order.
The Draft Law 2102 was approved today and is now sent for signing by the President. The President shall sign the document within 15 calendar days after which the publication of the law shall be made in another 15 days. After the law is duly published, it will come into force in three month period. Ultimately, the current law shall come into effect as early as in the beginning of March 2016.
Draft Law 2168a introduces a two-tiered system whereby a merger clearance will be required in any of the following two cases:
In addition to increase of financial thresholds and complete elimination of the market share threshold, the draft law simplifies the merger review procedure as follows:
The Draft Law 2168a is currently set for the second reading during which the Parliament will either adopt the changes to the law or schedule its review for the third reading. At this stage, it is not clear when the second reading will take place, yet the community expects the law to be adopted still this year or at least during the current Parliament session, which ends in January 2016.
In addition, there are high chances that by the second reading the law drafters may further remodel the new thresholds.
Draft Law 2431 stipulates that the amount of fine for violation of economic competition should be calculated based on the Recommendations on Calculation of Fines for Violation of Ukrainian Competition Law that were adopted by the AMC in September (see our press release).
In addition, Draft Law 2431 entitles the defendant in the case on violation to appeal against AMC’s decision to the commercial court with respect to the fine and/or obligation on elimination of consequences of the violation. According to the Draft Law 2431, the commercial court should amongst other apply the Recommendations on Calculation of Fines for Violation of Ukrainian Competition Law while considering the appeal.
It is also stipulated that in its decision the commercial court may leave AMC’s decision without changes, change the amount of a fine, change an obligation on elimination of consequences of the violation, and annul the decision of the AMC completely.
The Draft Law 2431 is also set for the second reading during which the Parliament will either adopt the changes to the law or schedule its review for the third reading. It is also not clear when the second reading will take place, yet the community expects this law to be adopted still this year along with the adoption of Draft Law 2168a.