Afghanistan

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Score = 0

Governed by: There is currently no competition law that is enforced in Afghanistan. There is a law on the books from 2010, Competition Law[1], but it is officially not enforced.[2] A consultation-ready DRAFT of legislation to replace the 2010 law has been under consideration since at least 2011, and is presented here (hereinafter referred to as ("DRAFT Competition Law").[3] If the draft were adopted in the form available on the Ministry of Commerce and Industries website, its Antitrust World Reports score would be 26.

Category Subcategory Score Comment
Scope Extraterritoriality 1 § 41: "The provisions of this Act shall apply to all such agreements or business practices which have a direct, foreseeable and substantial effect in the relevant market in Afghanistan, irrespective of whether such agreement, business practice or combination is entered into or carried out outside of Afghanistan or any or all parties to the agreement, business practice or combination are located outside of Afghanistan."
Remedies Fines 1 § 25: Fines may be imposed for anti-competitive agreements (§ 3), abuse of dominant position (§ 4), hoarding (§ 5), and prohibited mergers (§ 6).
Prison Sentences 0
Divestitures 1 §§ 20 and 21 provide for directing parties in a merger, or dominant enterprises, to make such modifications to their enterprises or agreements as are needed to prevent abuse of dominant position.
Private Enforcement 3rd Party Initiation 1 § 18 provides for initiation of an investigation by any person.
Remedies Available to 3rd Parties 1 § 34.3: "Without prejudice to the provisions of this Act, any person [natural or legal] may make an application to the Competition Court to adjudicate on a claim for compensation that may arise from the findings of the Competition and Consumer Authority, and to pass an order for the recovery of compensation from any enterprise for any loss or damage shown to have been suffered as a result of any contravention of the provisions of Chapter II, having been committed by such enterprise."
3rd Party Rights in Proceedings 0
Merger Notification Voluntary 0
Mandatory 3 §6(3)(b) requires that mergers meeting set criteria "shall be notified to the Competition and Consumer Authority for their approval, prior to their implementation and within thirty days of the approval of the proposal relating to the combination by the board of directors of the concerned enterprises or execution of a formal agreement, or announcement of public bid or the acquisition of a controlling interest."
Pre-merger 2
Post-merger 0
Merger Assessment Dominance 1 §6(3) requires prior approval of mergers that would result in worldwide turnover or worldwide assets that exceed amounts set in regulations, or by parties whose combined domestic market share is greater than 50%.
Restriction of Competition 1 §6: "No person or enterprise shall enter into a combination which has the object or effect of preventing, restricting or distorting competition in the relevant market in Afghanistan and such combination shall be void."
Public Interest (Pro D) 0
Public Interest (Pro Authority) 0
Other 1 §19(1)(j) allows the Competition and Consumer Authority to consider "possibility of a failing business" when determining whether to permit a merger.
Efficiency 1 §19(1)(k) permits the Competition and Consumer Authority to consider "nature and extent of innovation" when deciding on whether to allow a merger.
Dominance Limits Access 1 §4(2)(f) prohibits a dominant enterprise from "[indulging] in a practice or practices resulting in denial of market access."
Abusive Acts 1 §4(1): "No enterprise shall abuse its dominant position by carrying out such business practices or entering into such agreements, which have as their object or effect prevention, restriction or distortion of competition in the relevant market."
Price Setting 1 §4(3) "Certain types of business practice(s) or agreement(s), when carried out or entered into by dominant enterprises, including... imposing the requirement of resale price maintenance, unless it is expressly stated that prices lower than those prices may be charged... shall be prohibited under sub-section (1) only if such practice(s) or agreement(s) has the effect of preventing, distorting or restricting competition in the relevant market in Afghanistan."
Discriminatory Pricing 1 §4(2)(a) forbids an enterprise from using its dominant position to "directly or indirectly, [impose] unfair or discriminatory: (i) condition in purchase or sale of goods or services; or (ii) price in purchase or sale... of goods or services


Predatory Pricing 1 §4(2)(a)(ii) forbids a dominant enterprise from engaging in predatory pricing.


Resale Price Maintenance 1 §4(3) "Certain types of business practice(s) or agreement(s), when carried out or entered into by dominant enterprises, including... imposing the requirement of resale price maintenance, unless it is expressly stated that prices lower than those prices may be charged... shall be prohibited under sub-section (1) only if such practice(s) or agreement(s) has the effect of preventing, distorting or restricting competition in the relevant market in Afghanistan."


Obstacles to Entry 1 §4(2) and §4(3)
Efficiency Defense 0
Restrictive Trade Practices Price Fixing 1 §3(2)(i)


Tying 1 §4(3)(a)


Market Division 1 §3(2)(iii)


Output Restraint 1 §3(2)(ii)


Market Sharing 1 §3(2)(iii)
Eliminating Competitors 0


Collusive Tendering/Bid-Rigging 1 §3(2)(iv)


Supply Refusal 1 §3(2)(ii)
Efficiency Defense 0

References

  1. Competition Promotion and Consumer Protection Directorate(CPCPD), http://www.cpcpd.gov.af/the-law.html
  2. FAQ of the Competition Promotion and Consumer Protection Directorate, http://www.cpcpd.gov.af/faqs.html
  3. Ministry of Commerce and Industries, http://moci.gov.af/Content/files/CL-DRAFT.pdf