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Small and developing competition agencies – Georgian Competition Authority – December 2017 OECD discussion

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This presentation by the Georgian Competition Authority was made during Break-out Session 2: Enforcement in the framework of the discussion on “Overcoming adversity and attaining success: Small and developing competition agencies” held at the 16th meeting of the OECD Global Forum on Competition on 8 December 2017. More papers and presentations on the topic can be found out at oe.cd/sda.

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Small and developing competition agencies – Georgian Competition Authority – December 2017 OECD discussion

  1. 1. Nika Sergia LEPL Competition Agency of Georgia Competition enforcement in regulated sectors – Issue for ex-post or ex-ante regulators? The Georgian perspective
  2. 2. Competition enforcement system in Georgia  General legal frames – Georgian law on competition, by-laws  Competition protection office (generally) – Georgian competition agency  Competition enforcement by sectoral regulatory bodies
  3. 3.  Spheres specified by Georgian Organic Law on the National Bank of Georgia, Georgian laws on Activities of Commercial banks, On Investment Funds, On Electronic Communication, On Broadcasting and On Electric Energy and Natural Gas, as well as municipal service sphere free pricing and comp etition is limited and specified by the resolutions of the Government of Georgia as regulated economic spheres and are subjected to tariffs regulation Regulated sphere of economy
  4. 4.  NBG – National Bank of Georgia  GNERC – Georgian National Energy and Water Supply Regulatory Commission  GNCC – Georgian National Communications Commission Sectoral regulators (main)
  5. 5.  No legal competence of GCA in Regulated sphere of economy  No investigation  No fines In case of application or complaint regarding such fields:  Forward it to regulatory body Main challenge
  6. 6. Regulators  Perfect understanding of market  Simplicity to find point of efficiency on the market  No effective and flexible competition enforcement mechanism Ex-ante or ex-post GCA  Lack of Data  Hard work to analyze the impact of competition enforcement on the market efficiency  Better tools for enforcement
  7. 7.  Legal solution: WIP, pending  Practical solution Memorandums of understanding Cooperation on consultation level (but No official working groups) Solutions
  8. 8.  In house experts together with staff of GCA working on amendments on Georgian law on Competition Aim: to cover all markets including regulated spheres,  Within the GCA competences, or  Left by the regulators, but with good mechanism of cooperation between regulators and GCA (on the legal basis) EU Project – Support to GCA
  9. 9. Co-operation (between authorities) is the core element for the effective enforcement of competition rules on regulated markets. Regardless of the leading authority in such cases (ex ante or ex post regulator). General outcome
  10. 10. LEPL Competition Agency of Georgia Address: №154 D. Aghmashenebeli Ave. E-mail: info-gca@competition.ge Tel: (032) 440 770 (extension number 21-74) Web-site: www.competition.ge

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