Rustavi, Georgia: The Georgian Competition and Consumer Protection Agency (GCCA) fined the Rustavi auto market with a GEL 848,276 on May 23, for abusing its dominating position.
The GCCA has concluded the investigation of the case initiated based on the joint complaint of auto importers and found the fact of abuse of the dominant situation between Rustavi Autobazroba Ltd and Mikado Georgia Ltd.
Within the scope of the study, GCCA found that in 2023. In the territory of Rustavi’s car market, in exchange for using parking, responsible economic agents operated with unfairly high prices. The price increase has been implemented twice or more, which overstated the difference between the daily rate of 1 parking space and the “cost plus margin“. Eventually, the action was judged by the agency as an abuse of a dominant situation, which was unfairly high pricing.
By the decision of the agency, both responsible economic agents (as a result of the survey, both companies were identified as a single economic entity) were fined in total – 848 276 GEL.
Also, within the scope of the investigation, both responsible companies were fined 3-3 times for improperly providing information to the agency – in total 26 000 GEL, and finally receiving the information was done through court mediation.
In the relevant sector, to improve the competitive environment and prevent misuse of the dominant situation in the future, the agency made a mandatory recommendation for discussion. According to the recommendation, given agency decisions and international practice, agents with dominant positions of economic-service/production cost policies should be implemented in such a way that assesses and considers anti-competitive risks before pricing.
The decision made by GCCA, within one month, responsible economic agents can appeal to the Tbilisi City Court.
