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.

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. 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.  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.  NBG – National Bank of Georgia
 GNERC – Georgian National Energy
and Water Supply Regulatory
Commission
 GNCC – Georgian National
Communications Commission
Sectoral regulators (main)

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. 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.  Legal solution:
WIP, pending
 Practical solution
Memorandums of understanding
Cooperation on consultation level
(but No official working groups)
Solutions

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. 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. 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