Antimonopoly Regulation Of Tenders

In Kazakhstan, the regulation of tender procedures, both public and private, is generally divided into four categories:

1. Antimonopoly regulation of Tenders

   Antimonopoly regulation of tenders is carried out by the antimonopoly body - the Committee of the Ministry of the National Economy of RK for the Regulation of Natural Monopolies and Protection of Competition, and its territorial units:

   Under the RK Law on Natural Monopolies and Regulated Markets (Natural Monopolies Law): with respect to purchases, the expenses for which are taken into account in approving tariffs (prices, charge rates) or tariff maximum levels and tariff cost sheets for regulated services (products, works) which are the subject of a natural monopoly. Under the RK Law on Competition (Competition Law): in terms of any anticompetitive agreement between market participants, such as: a) horizontal agreements, i.e. those which infringe upon the legitimate rights of consumers and/or result/may result in the increase, decrease or maintenance of prices at tenders, or distortion of the results of tenders, auctions or trading, including by way of separation by lots;

   2. agreements reached in any form, which lead or may lead to the restriction of competition, including those related to the distortion of the results of tenders, auctions or trading due to the breach of the established procedure for conducting thereof, including by way of separation by lots.

      Antimonopoly regulation of tenders conducted in accordance with the RK Law on Natural Monopolies and Regulated Markets is carried out by the antimonopoly body in exercising the following powers vested upon it by the Law:

   1. Canceling the results of a tender held by a natural monopolist before it enters into an agreement with the winner of a tender conducted in violation of the RK legislation and obliging it to hold a new tender;

   2. Rejecting an application by a natural monopolist for the approval of tariffs (prices, fee rates) or their maximum levels if any violation is found in the course of examination of such application by the authorized body;

   3. Initiating a change in tariffs (prices, fee rates), or maximum levels thereof, for regulated services (goods, work) of a natural monopolist, and approving of a temporary compensating tariff to reimburse losses to consumers caused by the natural monopolist, if the authorized body found violations resulting in losses to consumers during the period when such tariffs (prices, fee rates) or...