Tashkent (TDI): Uzbekistan has introduced a series of transformative institutional reforms over the past 5 years to modernize its economic policies and enhance competition.
Chairman of the Committee for the Development of Competition and Protection of Consumer Rights, Khalilillo Turakhujaev, has underlined the nation’s commitment to reducing state presence in the economy and strengthening fair market practices.
The implementation of the “Yellow Pages Rule” has been a basis of these reforms. This rule prohibits the establishment of a state-owned enterprise (SOE) if 5 private-sector entities are already operating in the same industry.
This benchmark was set up after vigorous market monitoring revealed that the presence of 5 entities signals sufficient non-concentration.
In a move to boost governance, the country has made the competition authority directly accountable to the President and Senate, guaranteeing independent decision-making and minimizing conflicts of interest.
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State enterprises and public bodies are now need to comply with competition compliance tools aimed at preventing competition law violations.
These tools include adopting good governance principles such as corporate governance rules, ethics codes, and oversight mechanisms.
Firms must appoint internal officers to report compliance annually, increasing transparency and accountability.
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Non-compliance carries strict fines, reinforcing these steps as effective deterrents against anti-competitive practices.
Moreover, SOEs are now barred from participating in public procurement to eliminate conflicts of interest.
New Obligations for Beneficiary Disclosure
New obligations for beneficiary disclosure have also been introduced.
Regulatory Impact Assessments and Competition Impact Assessments are now necessary for all draft legal acts to considerably reduce the regulatory burden on businesses.
Uzbekistan has also committed to revising and ending state aid provisions that distort competition, ensuring a level playing field.
Tax and customs benefits across twenty-four sectors have been abolished, along with individual benefits in 4 sectors and exclusive rights in thirteen others.
