NGO suggests the amount of penalties imposed on companies for antitrust conspiracy be raised to 5-15% of their turnover for previous year

YEREVAN, September 18, /ARKA/. A non-governmental organization set up to protect the interests of consumers, suggested today that the amount of penalties imposed on companies for antitrust conspiracy or abuse of their dominating positions at the local food commodities markets be raised to 5-15% of their turnover for the previous year, but no more than 5 billion Drams.

Speaking to a news conference, convened to unveil the findings of a survey conducted by the organization in March- June to find out the impact of growing prices on the conditions of vulnerable segments of population, its chairman, Abgar Yeghoyan, said the amount of penalties must knock off once and for all the desire of such companies to raise prices of basic foods by taking advantage of their dominance at local markets.

The State Commission for Protection of Economic Competition is considering now a set of bills calling for rise of penalties imposed on companies for unfair competition and abuse of dominating position at the market. The current maximum amount of penalty is 2% of the turnover for the previous year, but no more than 300 million Drams.

Yeghoyan proposed that the government set up an off-budget fund to accumulate 50% of penalties which could be used to educate the public about its rights.

The study was conducted with the support of the Armenian office of Oxfam charity organization based on findings of the non-governmental organization and the official numbers of the National Statistical Service.

According to government data, the inflation in March – June rose by 7.4% year-on-year. The government has projected a 4±1.5% inflation for 2010.  -0-