Article 175. Monopolistically high and monopolistically low price of goods of the Entrepreneurial Code of the Republic of Kazakhstan
1. A monopolistically high price of a product is the price set by a market entity occupying a dominant or monopolistic position, if this price exceeds the amount of expenses and profits necessary for the production and sale of such a product and the price that has been formed under competitive conditions in the relevant or comparable commodity market, including the established:
1) by increasing the previously set price of the product, if the following conditions are fulfilled in combination:
the costs necessary for the production and sale of the goods remained unchanged or their change is disproportionate to the change in the price of the goods;
the composition of sellers or buyers of the product has remained unchanged, or the change in the composition of sellers or buyers of the product is insignificant;
the conditions of circulation of goods on the commodity market, including those caused by government regulatory measures, including taxation, customs tariff, tariff and non-tariff regulation, have remained unchanged or their change is disproportionate to the change in the price of the goods;
2) by not lowering the previously set price of the product, if the following conditions are fulfilled in combination:
the costs necessary for the production and sale of goods have decreased significantly;
the composition of sellers or buyers of a product makes it possible for the price of a product to decrease;
the conditions of circulation of goods on the commodity market, including those caused by government regulatory measures, including taxation, customs tariff, tariff and non-tariff regulation, provide the possibility of changing the price of goods in the downward direction.
2. A commodity market is a sphere of circulation of goods (including goods of foreign manufacture) that cannot be replaced by another product, or interchangeable goods, within the boundaries of which (including geographical), based on economic, technical or other possibility or expediency, the buyer can purchase goods and beyond which such possibility or expediency is absent.
3. A comparable commodity market is another commodity market that is comparable in terms of the volume of goods sold, the composition of buyers or sellers (suppliers) of goods, determined based on the purposes of the purchase or sale of goods, and the conditions of access to the commodity market.
If it is impossible to compare the price in the same commodity market, the comparison is made with the price of the product in a comparable commodity market, including outside the Republic of Kazakhstan.
If it is impossible to determine the price prevailing in a competitive environment in a comparable commodity market, or a comparable commodity market, including outside the Republic of Kazakhstan, an analysis of the costs and profits of the market entity is carried out and a reasonable price of the goods is determined.
4. The monopolistically high price of a product established for a market entity in accordance with the laws of the Republic of Kazakhstan is not recognized.
4-1. The price of exchange-traded goods formed during properly conducted trades on commodity exchanges and electronic trading platforms shall not be recognized as monopolistically high (low) in accordance with the procedure determined by the antimonopoly authority, if such price is not established as a result of monopolistic activities limited by this Code.
The price of an exchange-traded commodity is not recognized as monopolistically high in accordance with the procedure determined by the antimonopoly authority, if it does not exceed the price established during the period under review during properly conducted trading on commodity exchanges and electronic trading platforms.
The fact of establishing a monopolistically high (low) price is revealed by investigating violations of the legislation of the Republic of Kazakhstan in the field of competition protection.
5. A monopolistically low price of a product is the price set by a market entity in a dominant or monopolistic position if:
1) this price is lower than the price set in the same commodity market by a market entity that is not part of the same group of persons as the dominant market entity.;
2) this price is lower than the amount of the actual cost of producing and selling such a product.
6. The price of a product shall not be considered monopolistically low if it does not meet at least one of the criteria specified in paragraph 5 of this article. The monopolistically low price of a product established for a market entity in accordance with the laws of the Republic of Kazakhstan is not recognized.
7. When determining the monopolistically high price of a product in accordance with paragraph 1 of this article, exchange-traded and over-the-counter price indicators established on the world and Kazakh markets of a similar product are taken into account.
The footnote. Article 175 as amended by the Laws of the Republic of Kazakhstan dated 05/24/2018 No. 156-VI (effective after ten calendar days after the date of its first official publication); dated 04/02/2019 No. 241-VI (effective after ten calendar days after the date of its first official publication); dated 10/28/2019 No. 268-VI (effective after ten calendar days after the date of its first official publication); dated 06/29/2020 No. 352-VI (effective after ten calendar days after the date of its first official publication); dated 03.01.2022 No. 101-VII (effective sixty calendar days after the date of its first official publication).
President
Republic of Kazakhstan
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