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Price-Fixing Investigations

What triggers a competition investigation in Georgia?

Investigations can be triggered by complaints from competitors, consumers, or initiated by the Competition Agency itself based on market monitoring results.

Can exchanging price information be illegal?

Yes, sharing future pricing intentions or sensitive commercial data with competitors reduces uncertainty and can be considered a concerted practice violating competition law.

What is a Dawn Raid?

It involves unannounced on-site inspections by the Competition Agency (with a court order) to seize documents and data related to suspected antitrust violations.

Does Georgia recognize whistleblower immunity?

Yes, under the Leniency Program, the first company to report a cartel and provide evidence can receive full immunity from administrative fines.

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Price-Fixing Investigations: Legal Defense in Competition Law Disputes

Competition law is one of the most strictly regulated areas of business in Georgia. Price-fixing involves an agreement between competitors to artificially determine, maintain, or increase prices for products or services. Such action is considered a cartel agreement and is severely punished under Georgian legislation. The Georgian National Competition Agency actively monitors the market and, upon detecting violations, imposes substantial fines on companies, often amounting to a significant percentage of annual turnover. Allegations of price-fixing can be brought against any company suspected of coordinating prices with competitors, bid-rigging in tenders, or market allocation. In such times, qualified legal assistance is vital, as the wrong strategy can lead not only to financial loss but also to the destruction of the company's reputation.

Legal.ge offers access to competition law experts who have experience participating in Agency investigations and defending corporate interests. Through our platform, you can find specialists who will assist you in both prevention and during ongoing investigation processes.

What Does Price-Fixing Investigation Service Cover?

This service covers the full cycle of legal support during suspicions or accusations of competition law violations:

  • Internal Investigation and Audit: Analyzing the company's internal documentation, email correspondence, and contracts to determine if there are signs of price-fixing.
  • Representation at the Competition Agency: Lawyer participation in investigations conducted by the Agency, providing explanations, and submitting evidence.
  • Utilizing the Leniency Program: Developing a strategy on whether to cooperate with the Agency and admit guilt in exchange for immunity from fines or a reduction in penalties.
  • Litigation: Appealing decisions of the Competition Agency in Georgian courts.
  • Dawn Raid Preparation: Training company employees on how to behave during unexpected inspections conducted by the Agency.

Common Scenarios When You Need This Service

The risk of price-fixing arises in various situations:

  • Association Meetings: When competitors meet within an industry association and discuss prices or future plans, which can be interpreted as an agreement.
  • Parallel Pricing: When several major players in the market change prices simultaneously, raising suspicions of coordinated action.
  • Distribution Agreements: When a supplier dictates a resale price to a distributor (Resale Price Maintenance), which is a violation in certain cases.
  • Public Procurement: When companies participating in a tender agree on prices in advance (Bid Rigging).

Georgian Legal Framework

Issues related to price-fixing are regulated by the Law of Georgia on Competition. Article 7 of the law prohibits agreements, decisions, or concerted practices between economic agents aimed at or resulting in the restriction of competition. Price-fixing (direct or indirect) is considered the most serious violation ("hardcore cartel"). The law provides for a fine of up to 5% of the total revenue of the previous financial year, and in aggravating circumstances, this number may increase. Additionally, there is a "Leniency Program", regulated by the normative acts of the Competition Agency, which implies exemption from liability for the person who first provides the Agency with information about the cartel.

Service Process Stages

Working with a specialist selected on the Legal.ge platform involves:

  1. Initial Risk Assessment: The lawyer reviews the case details and assesses the validity of the Competition Agency's claims.
  2. Strategy Selection: Defining defense tactics — active defense and denial of charges versus using the Leniency Program.
  3. Evidence Collection: Preparing economic analysis to prove that price changes were caused by objective market factors rather than an agreement.
  4. Representation: Lawyer participation in Agency hearings and court proceedings.
  5. Prevention: Developing Compliance policies to avoid future risks.

Why Legal.ge?

Competition law is a very narrow and specific field. A generalist lawyer may not be able to handle the complexities of cartel investigations, where a synthesis of economic and legal arguments is required. Legal.ge connects you with professionals who have practical experience dealing with the Competition Agency. Protect your business from heavy fines and reputational damage with qualified assistance.

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