Price Manipulation and Cartel Defense: Antitrust Legal Support
Price manipulation and agreements on prices between competitors (so-called cartel deals) represent the most serious violations of competition law. In Georgia, the "Law on Competition" strictly prohibits agreements, decisions, or concerted practices between economic agents aimed at or resulting in the restriction, prevention, or prohibition of competition in the market. This includes price fixing, market sharing, or limiting production. The Competition Agency is authorized to conduct investigations and impose fines on companies of up to 5% of their annual turnover, which amounts to millions of GEL for large businesses.
These types of cases are characterized by exceptional economic and legal complexity. Accusations are often based on indirect evidence (parallel behavior in the market). The lawyer''s task is to prove that price changes were caused by objective market factors (e.g., rising raw material costs, currency exchange rates) and not by secret agreements with competitors. Qualified antitrust defense is essential to save the business.
What Does Defense Against Price Manipulation Charges Cover?
Specialists on Legal.ge offer high-level services in competition law:
- Economic Analysis: Market research and preparation of economic justification for pricing strategies for the Agency.
- Refuting Cartel Allegations: Presenting evidence that the company acted independently and had no communication with competitors regarding prices.
- Defense Against Abuse of Dominance: If a company is accused of monopolistically high or low (predatory) prices, the lawyer proves the economic justification of the price.
- Leniency Program: If a violation did occur, the lawyer helps the company utilize the "Leniency Program," which involves full or partial immunity from fines in exchange for admitting the violation.
Common Situations and Real-World Scenarios
Antitrust disputes often arise in the following sectors:
- Fuel Market: Synchronous price increases by oil companies, raising suspicions of a cartel agreement for the Agency.
- Pharmaceutical Sector: Artificially maintaining prices on medications or colluding during tenders.
- Public Procurement (Bid Rigging): Agreement between bidders to ensure a specific company wins at an inflated price.
- Retail: Suppliers forcibly setting resale prices for supermarkets (Resale Price Maintenance).
Georgian Legislation and Legal Framework
The primary act is the Law of Georgia on Competition. Article 7 prohibits agreements restricting competition. Article 6 prohibits the abuse of a dominant position. The enforcement of the law is the responsibility of the Georgian National Competition Agency. The legislation is fully aligned with EU regulations. The standard of proof is quite high, though the Agency has the right to conduct surprise inspections (so-called Dawn Raids) to obtain evidence.
Process: What to Expect When Working with a Specialist
The lawyer engages as soon as the investigation begins. They prepare a response to the Agency''s request for information. Providing incorrect information itself leads to fines. The lawyer attends Agency hearings and presents economic expertise. If the Agency makes a negative decision, the lawyer appeals it in court, where it is possible to suspend the fine until the dispute is resolved.
Why Choose Legal.ge?
Competition law is one of the most complex branches of jurisprudence. Legal.ge gives you access to antitrust experts with experience in multi-million disputes. They will help you protect your business strategy and finances. Find your lawyer on Legal.ge.
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