Competition Law at Armenia
Armenia's competition law is primarily governed by the Law on Protection of Economic Competition, which aims to foster fair market practices, prevent monopolistic behaviors, and safeguard consumer interests. The Competition Protection Commission (CPC) serves as the central regulatory authority overseeing the enforcement of this law.
Key Aspects of Armenia’s Competition Law
1. Concentration Control (Mergers & Acquisitions)
Armenia's competition law mandates that certain mergers, acquisitions, and other concentration activities be declared to the CPC for review. This includes transactions where:
The combined assets or revenue of the involved parties exceed AMD 4 billion.
At least one party has assets or revenue exceeding AMD 3 billion.
One party holds a dominant position in any product market.
The CPC assesses these transactions to prevent the creation or strengthening of market dominance that could harm competition. Failure to declare such concentrations can result in fines up to 10% of the involved entity's annual revenue
2. Anti-Competitive Agreements
The law prohibits agreements that restrict or distort competition, such as price-fixing, market-sharing, or collusion. For instance, in December 2024, four major fuel companies were fined over AMD 1 billion for coordinated price increases despite differing costs, indicating active enforcement against such practices
3. Abuse of Dominant Position
Entities holding a dominant market position are prohibited from abusing that power to the detriment of competition or consumers. In March 2025, the CPC identified a case where a retail chain delayed payments to suppliers beyond the legally mandated 30 days for food products and 60 days for non-food items. Such practices can lead to fines up to 10% of the violator's annual turnover .
4. Consumer Protection Enhancements
Recent legislative amendments aim to align Armenia's competition and consumer protection laws with European Union standards under the Comprehensive and Enhanced Partnership Agreement (CEPA). These changes include:
Establishing the Commission for Protection of Competition and Consumer Rights as the central authority for enforcing both competition and consumer protection laws.
Implementing regulations against unfair, misleading, and aggressive trade practices.
Mandating that retail chains maintain websites, set clear entry and exit rules, and have contracts with suppliers.
Enforcing timely payments to suppliers, with penalties for delays .
5. International Cooperation and Capacity Building
Armenia actively collaborates with international organizations such as the United Nations Conference on Trade and Development (UNCTAD), the Organisation for Economic Co-operation and Development (OECD), and the International Consumer Protection and Enforcement Network (ICPEN). These partnerships aim to enhance Armenia's competition law framework and enforcement capabilities .
Enforcement and Penalties
The CPC has demonstrated a proactive approach in enforcing competition laws. In 2022, the CPC imposed fines totaling AMD 600 million, a significant increase from previous years. Notably, in the gambling sector, three entities were fined a combined AMD 433 million for anti-competitive practices, marking one of the highest penalties in the Commission's history
Conclusion
Armenia's competition law framework is evolving to meet international standards, with a strong emphasis on preventing anti-competitive practices and protecting consumers. The CPC plays a crucial role in ensuring compliance, and recent legislative reforms aim to enhance its effectiveness in fostering a fair and competitive market environment.
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