Consultancy for Regulated Entities: the NBG Publishes Draft Competition Rules
The amendments to the Law of Georgia on Competition and the Organic Law on the National Bank implemented in 2020 give the NBG more specific powers pertaining to competition policy. The National Bank, similar to other regulatory authorities, is now obligated to develop a set of statutory documents regulating competition policy for entities under regulation by June 1, 2021. The significance of improving competition policy is also declared in the Letter of Intent signed by the International Monetary Fund, the Government of Georgia and the NBG in 2020.
As part of its work on competition standards, the NBG has developed a draft Regulation on Filing and Review of a Notice on Market Analysis and Concentration. The purpose of the document is to effectively implement the competition policy in the NBG-regulated industry, and to evaluate and maintain a competitive market environment. This statutory document is expected to establish the methodological guidelines for market analysis, evaluation criteria and parameters, along with the criteria and procedures for filing and reviewing a concentration (merger) notice. The Regulation on Competition is based on the Law of Georgia on Competition, secondary legislation of the Competition Agency and currently available international best practices, including those of the European Union, the Great Britain, Canada, the Organization for Economic Cooperation and Development (OECD).
Moving further, the NBG has prepared a draft Regulation on Investigation of Cases Related to Potential Violation of Competition, Receipt and Review of Appeals and Notices", that specifies the rules and procedures to apply as NBG investigates cases of potential violation of competition, and reviews filings.
It should be pointed out that in drafting the competition statutes, the NBG enjoyed expert assistance by the representatives of the World Bank. In the framework of the World Bank Technical Assistance Project, further work is planned on facilitation and implementation of competition policy.
Published on the NBG website, both draft regulations are available for consultancy and feedback from stakeholders. Suggestions, comments and questions are welcome until May 26, 2021.