Mongolia (May 12, 2000)

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Score = 18

Governed by: Law of Mongolia of May 12, 2000 on Prohibiting Unfair Competition.[1]

Category Subcategory Score Comment
Scope Extraterritoriality 0
Remedies Fines 1 Article 18 allows for fines for competition violations.
Prison Sentences 0
Divestitures 1 Article 14.1.3 allows the Committee to force an abusive, dominant firm to restructure.
Private Enforcement 3rd Party Initiation 0
Remedies Available to 3rd Parties 1 Article 18.1 provides that violators who injure other parties must compensate them.
3rd Party Rights in Proceedings 0
Merger Notification Voluntary 0
Mandatory 3 Article 15.2 requires all merging companies to register; the Committee's rejection of a merger precludes registration.
Pre-merger 0
Post-merger 1 A time frame for the merger notification is not specified in the statute.
Merger Assessment Dominance 1 Article 15.1 bans dominant entities from merging with competitors.
Restriction of Competition 1 Article 15.3 states that mergers which create dominant parties, thus restricting competition, may be banned.
Public Interest (Pro D) 1 Article 5 states that "legitimate monopolies" may exist if they provide a commodity to the public at the lowest social cost.
Public Interest (Pro Authority) 0
Other 0
Efficiency 0
Dominance Limits Access 1 Article 6.1.1 bans a dominant party from restricting production to drive prices up.
Abusive Acts 0
Price Setting 1 Article 6.1.6 prohibits price setting.
Discriminatory Pricing 1 Article 6.1.2 prohibits discriminatory pricing.
Resale Price Maintenance 0
Obstacles to Entry 1 Article 6.1.3 prohibits using predatory pricing to create obstacles to entry.
Efficiency Defense 0
Restrictive Trade Practices Price Fixing 1 Article 7.1.1 bans price fixing.
Tying 1 Article 6.1.5 prohibits tying arrangements
Market Division 1 Article 7.1.2 prohibits market division.
Output Restraint 1 Article 7.1.1 prohibits limiting production.
Market Sharing 0
Eliminating Competitors 1 Article 6.1.3 prohibits predatory pricing to drive competitors from the market. Article 6.1.9 prohibits a dominant party from demanding that a competitor liquidate his business.
Collusive Tendering/Bid-Rigging 1 7.1.4 bans bid rigging
Supply Refusal 1 Article 7.1.6 bans the practice of refusing to sell to third parties.
Efficiency Defense 0

References

  1. Statute available from the Mongolian Government, at http://www.pmis.gov.mn/law/english/pdf/unfair_competition.pdf