UBA Antitrust Law Committee Appeal Regarding the Draft Law № 5431

2021-11-29

KYIV - November 29, 2021. The UBA Competition Law Committee sent letters of appeal to the Chair of the Antimonopoly Committee of Ukraine Olha Pishchanska and the Chair of the Verkhovna Rada Committee on Economic Development Dmytro Natalukha regarding the draft law № 5431 dated April 27, 2021.

Earlier, during the consideration of the draft law No 5431 in the Verkhovna Rada Committee on Economic Development, representatives of the UBA Competition Law Committee expressed their reservations about its norms, and MPs - members of the Verkhovna Rada Committee agreed on the need to substantially revise the draft before the second reading.

We would like to emphasize that the remarks and proposals of the UBA Committee to the draft law № 5431 were considered earlier, namely regarding:

-          removal of provisions on inspections at places of residence and other possessions of individuals, which did not provide a comprehensive settlement of legal relations related to the implementation of the AMCU of such powers, and created preconditions for violation of rights and freedoms of individuals;

-          identification of signs of concentration in the creation of a full-fledged business entity with two or more business entities that will independently carry out economic activities for a long period.

At the same time, the UBA Committee expresses its concern that important proposals on:

 

-          preventing the application of the exemption program to the initiators and organizers of anticompetitive concerted actions, because the introduction of such leniency contributes to a greater number of anticompetitive concerted action initiatives;

-          proper regulation of the rights of persons involved in cases and the establishment of guarantees of observance of such rights, in particular, ensuring a fair balance between the right of a person to protection and the right of others to the confidentiality of information; ensuring the right of a person to the secrecy of consultations with a lawyer;

-          preserving the right of legal entities and individuals, in particular consumers who have suffered losses by anticompetitive concerted actions and abuse of monopoly position, to double such damages, as the proposed changes, given the lack of regulation of legal relations in terms of calculating actual losses and its practical complexity, in fact, they will eliminate the incentives of victims to such compensation, which will make the right to compensation declarative, and as a result of reducing the risk of property liability of potential violators will facilitate the commission of such violations.

In these letters, the Competition Law Committee of the Ukrainian Bar Association informs Mr. Natalukha and Olga Pishanska of their readiness to take an active part in drafting the necessary changes in the field of economic competition law and calls on representatives of the UBA Competition Law Committee to join the working group (if available), which is currently working on amendments to the draft law No 5431 submitted by the people's deputies of Ukraine, adopted in the first reading, and the relevant sitting of the Verkhovna Rada Committee, at which the amendments are planned to be discussed.

Lawyers also suggest that the Antimonopoly Committee of Ukraine organize a working meeting to discuss the necessary changes and amendments to the draft law No 5431 submitted by the people's deputies of Ukraine together with members of the UBA Competition Law Committee.

UBA members believe that this contributes to the development of a common position for its presentation to the people's deputies of Ukraine at the Verkhovna Rada Committee on Economic Development, which will further contribute to the effectiveness of discussion and consideration of the draft law in the session hall.

RECOVER PASSWORD