The decision of the Antimonopoly and Consumer Market Control State Service under the Ministry of Economy regarding violations in the activities of Azerbaijan Railways CJSC
Taking into account the results of the case and guided by Articles 3 and 17 of the Law of the Azerbaijan Republic “On Antimonopoly Activities” and the “Rules for the consideration of cases of violation of antimonopoly legislation,” approved by Resolution of the Cabinet of Ministers No. 10.120 dated May 29, 1998, the Commission
DECIDED:
1. In connection with the monopolization of the industry by Azerbaijan Railways CJSC and the unreasonable restriction of the independence of business entities (limitation of competition by refusal to agree on the “mesplans” of Alliance Logistics LLC in November 2023), which violates paragraph 4 of Article 6 of the Law of the Republic of Azerbaijan “On Antimonopoly Activities,” illegally acquired income in the amount of XXXXX is subject to payment to the state budget in accordance with paragraph 2 of part 1 of Article 17 of the same law.
2. The creation by Azerbaijan Railways CJSC of conditions for dumping in relation to its subordinate economic entities in order to limit or eliminate competition by establishing an industry monopoly (limitation of competition in the transportation of uranium concentrate by ADY Container LLC in November-December 2023) is a violation of the requirements of paragraph 11 of Article 6 of the Law of the Azerbaijan Republic “On Antimonopoly Activities,” as a result of which, in accordance with paragraph 2 of part 1 of Article 17 of the Law of the Azerbaijan Republic “On Antimonopoly Activities,” XXXXXX income must be paid to the state budget as illegally obtained profit.
3. Creation by Azerbaijan Railways CJSC of conditions for dumping in relation to its subordinate economic entities to limit or eliminate competition by establishing an industry monopoly (order No. 5-10275/2023 dated May 19, 2023, related to the provision of special benefits to LLC "ADY Konteyner" and led to a restriction of competition concerning prices for services provided at the Hovsan station) contradicts the requirements of paragraph 6 of Article 11 of the Law of the Azerbaijan Republic "On Antimonopoly Activities". Income received in violation of this law is subject to payment to the state budget as illegally obtained profit in accordance with paragraph 2 of part 1 of Article 17 of the Law of the Azerbaijan Republic “On Antimonopoly Activities.”
Based on the results of the consideration of the case against Azerbaijan Railways CJSC, to eliminate violations of paragraphs 4 and 11 of Article 6 of the Law of the Republic of Azerbaijan “On Antimonopoly Activities,” the following instructions were issued:
- Payment of illegally obtained profits to the state budget, termination of refusals for subjective reasons when approving “mesplans” with orders from forwarders working in this area, with a clear indication of the reasons for refusal to approve “mesplans”;
- Payment of illegally obtained profits to the state budget, provision of benefits not to entities but to transported goods, and ensuring that benefits apply to all business entities while observing the principles of competition between freight forwarders operating in this area, as well as timely notification of all freight forwarders;
- Payment of illegally obtained profits in the amount of XXXXXX to the state budget, ensuring the formation of equal, transparent, and fair conditions for competition between forwarders operating in this area, as well as preventing bias in relations between the subsidiaries of Azerbaijan Railways CJSC and private forwarders.
On June 24, 2024, the State Service for Antimonopoly Control and Supervision over the Consumer Market imposed a financial sanction in the amount of 246,241 manats on Azerbaijan Railways CJSC for violating the Law of the Republic of Azerbaijan “On Antimonopoly Activities.” To eliminate instances of industry monopoly in the relevant market, a number of mandatory instructions were issued.
* As you can see, there is no court decision that would refute or exclude the above, and the indicated violations are not similar to previously adopted decisions. For these reasons, all measures provided for by law are taken in relation to Azerbaijan Railways CJSC to ensure the economic and legal interests of business entities. Instead of evading responsibility, ADY CJSC is recommended to bring its activities into compliance with legal requirements.