Policy Brief: Competition Law and Policy in Ukraine

Ukrainian competition policy dates back to February 1992, shortly after independence from the Soviet Union, when the country’s first competition law was adopted as part of the effort to establish a market-based economy. The Antimonopoly Committee of Ukraine (AMC), created in 1993, now has responsibility for two laws that evolved from the original competition legislation. The 2001 Law on the Protection of Economic Competition is the principal vehicle for competition law enforcement, and the 1996 Law on Protection against Unfair Competition deals with conduct by one company intended to exploit or injure the competitive vitality of a competing enterprise.

The Competition Law is modeled on statutes adopted in European competition law regimes, and its adoption and enforcement are part of a continuing effort by Ukraine to integrate with western markets. In particular, Ukraine is seeking admission to the European Union, which requires that applicants for membership implement an effective competition law system.

In 2008, the OECD issued a peer review report assessing the development and application of competition law and policy in Ukraine, focusing on the previous five years (2003-07). The report concludes that Ukraine has a comprehensive and well-designed competition law and, in the AMC, an effectively managed and well-regarded agency to enforce it.

The report also identifies problems confronting Ukraine and proposes remedies. Recommendations concerning the AMC cover its budget allocation, autonomy, investigative tools, transparency, enforcement priorities and relationships with other law enforcement agencies. Other recommendations focus on merger notification requirements and procedures, state aid legislation, penalties for unlawful conduct and penalty collection procedures, competition advocacy, harmonization with the European Union’s competition laws and the elimination of conflicting provisions in Ukraine’s Commercial Code.

• Primary Source