The competition law regulates matters related to the creation of conditions for fair competition in the market for business entities, identification and implementation of legal and organisational grounds for prohibition, restriction and prevention of any activities impeding competition.
This law is effective in the territory of Mongolia and other countries, if the entity engages in illegal activities outside of Mongolia, and its effect on the market is proven.
Natural monopolies means a single entity that alone accounts for the total supply of particular goods to the market at the lowest minimum social cost.
Dominant position of an entity means a position when a single entity acting alone or in a group of business entities or related parties acting together, account for over one third of the manufactures, sales and purchases of certain kind of products in the market. In addition, a position when a single entity acting alone or in a group of business entities or related parties acting together, account for over one third of the manufactures, sales and purchases of certain kind of products in the market shall also be considered as dominance.
An entity in a dominant position shall be prohibited to engage in the following dominating activities:
Halting or restricting production or sale of goods in order to create an artificial shortage;
The dominant business entity shall submit an application to the Authority for Fair Competition and Consumer Protection (hereinafter – the ‘AFCCP’) in the case of restructuring through consolidation and merger, purchasing more than 20 percent of common stock and more than 15 percent of preferred stock from competitive company, which sales similar kind of products or consolidating and merging with related party.
GRATA International in Mongolia
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