Armenia’s antitrust body penalized Veolia Jur water distributor in the amount of 20 million drams
07.11.2018,
16:58
Armenia’s State Commission for the Protection of Economic Competition (SCPEC) ruled today to penalize Veolia Jur national water distribution company in the amount of 20 million drams (about $41 thousand).
YEREVAN, November 7. /ARKA/. Armenia’s State Commission for the Protection of Economic Competition (SCPEC) ruled today to penalize Veolia Jur national water distribution company in the amount of 20 million drams (about $41 thousand).
The ruling was based on a complaint by a local Armenian-German company Arazen, engage din production of water meters, which argued it was ousted from the market by Veolia Jur’s illegal activities.
Arazen complained that Veolia Jur that enjoys monopoly in Armenia, is also engaged in the import and installation of water meters. In just one year, it imported more than 30 thousand meters, but the purchased were not public, and Veolia Jur did not allow other companies to operate in the market.
The SCPEC asked Veolia Jur to provide information about how it chooses companies for supply of water meters, but received no criteria.
According to SCPEC, prices for water meters imported by Veolia Jur in some cases exceeded the cost of locally produced water meters three times. Thus, in 2017, the average prices of water meters imported by Veolia Jur ranged from 8,400 drams to 9,500 drams, while the average cost of the locally produced water meters ranged from 3,200 drams to 7,000 drams
SCPEC described the behavior of Veolia Jur as a violation of the law, saying it was obliged to ensure equal and non-discriminatory competition conditions for all companies, which was not done. Moreover, the behavior of the company, which has a dominant position in the market, had a negative impact on the activities of economic entities operating in the same field. Particularly, Arazen’s sales decreased by 60% over one year.
Veolia Jur CJSC (a subsidiary of the French Veolia Generale des Eaux) is the only national water distribution operator in the country. ($ 1 - AMD 487.88). -0-
The ruling was based on a complaint by a local Armenian-German company Arazen, engage din production of water meters, which argued it was ousted from the market by Veolia Jur’s illegal activities.
Arazen complained that Veolia Jur that enjoys monopoly in Armenia, is also engaged in the import and installation of water meters. In just one year, it imported more than 30 thousand meters, but the purchased were not public, and Veolia Jur did not allow other companies to operate in the market.
The SCPEC asked Veolia Jur to provide information about how it chooses companies for supply of water meters, but received no criteria.
According to SCPEC, prices for water meters imported by Veolia Jur in some cases exceeded the cost of locally produced water meters three times. Thus, in 2017, the average prices of water meters imported by Veolia Jur ranged from 8,400 drams to 9,500 drams, while the average cost of the locally produced water meters ranged from 3,200 drams to 7,000 drams
SCPEC described the behavior of Veolia Jur as a violation of the law, saying it was obliged to ensure equal and non-discriminatory competition conditions for all companies, which was not done. Moreover, the behavior of the company, which has a dominant position in the market, had a negative impact on the activities of economic entities operating in the same field. Particularly, Arazen’s sales decreased by 60% over one year.
Veolia Jur CJSC (a subsidiary of the French Veolia Generale des Eaux) is the only national water distribution operator in the country. ($ 1 - AMD 487.88). -0-
