"The Main Patron of Monopolists Cannot Fight Against Monopolism"

On August 27, President Ilham Aliyev signed a decree establishing the State Agency for Antimonopoly and Consumer Market Control under the President, based on the State Service for Antimonopoly and Consumer Market Control under the Ministry of Economy of Azerbaijan.

The first institution in Azerbaijan to combat monopolies, the Committee for Antimonopoly Policy and Assistance to Entrepreneurship, was established back in 1992. In 2001, this committee was incorporated into the Ministry of Economic Development and began functioning as the Antimonopoly Policy Department. On December 28, 2006, the State Service for Antimonopoly was created under the Ministry of Economic Development, and its responsibilities were expanded to include consumer market oversight. In 2009, the institution was renamed the "State Service for Antimonopoly Policy and Consumer Rights Protection" following a presidential decree. In 2017, the State Agency for Antimonopoly and Consumer Market Control was created under the structure of the Ministry of Economy. On October 23, 2019, the agency regained the status of a State Service.

Have these changes led to significant positive developments in the field of antimonopoly efforts? Is the problem related to which entity the institution operates under?

Lawyer Akram Hasanov shared his thoughts on this matter with ASTNA.

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Question: Mr. Akram, as you know, on August 27, President Ilham Aliyev signed a decree establishing the State Agency for Antimonopoly and Consumer Market Control under the President, based on the State Service for Antimonopoly and Consumer Market Control under the Ministry of Economy. Can this be considered a positive change?

Answer: Yes, it is a positive change because it was abnormal for this agency to be subordinated to the Ministry of Economy until now. That ministry is one of the main reasons for monopolism in the country. Most state-owned enterprises are under its control, and it also oversees public procurement. In other words, the ministry is primarily a supporter of monopolists. I have repeatedly expressed my opinion on this and suggested that the agency be removed from the ministry’s control and made independent.

Question: This institution, established in 1992, has undergone several changes over time. However, according to experts, none of these changes have led to significant positive developments in the field of antimonopoly efforts. Is the issue related to whether the institution operates under someone or independently?

Answer: Of course, the issue is not only about that but also partly about that. Everything starts with this issue. The main patron of monopolists cannot fight against monopolism.

Question: According to experts, if there were real opportunities to combat monopolism decisively in the country, the institution could still operate effectively under any ministry. What hinders its effective operation?

Answer: Just as a wolf cannot protect a flock of sheep, this ministry cannot protect entrepreneurs from monopolism and unfair competition, nor can it protect consumers from entrepreneurs. Let’s not forget that the ministry also includes the tax service. Therefore, its main goal is to fill the state budget. To achieve this goal, the Ministry of Economy cannot genuinely fight against monopolism. As long as taxes are collected, and the budget is filled, they are satisfied. Of course, this approach will lead the country to disaster in the long term. But we don’t even have medium-term planning here. Both officials and the public live only for today.

Question: Do you think that whoever or whatever is hindering the operation of this institution will no longer be able to influence it now that it has become independent?

Answer: They will certainly influence it. In this regard, nothing will change. The only difference is that the influences will now come from different directions, which may slightly soften the outcome. Until now, many issues were in the hands of the Minister of Economy.

Question: Will this institution be able to protect consumers' rights from now on? What steps need to be taken to achieve this?

Answer: Most likely, the new institution will be more successful in this area. Since it will not be directly under the influence of large state-owned enterprises, they will be more cautious, and the institution will be able to address consumer problems. Of course, this doesn’t refer to consumers’ large demands, but most consumer demands are not large anyway.

Question: Where and how should we begin the real fight against monopolism?

Answer: We need to start with three things: ensuring transparency in the state register of real estate, the state register of commercial legal entities, and the submission of income and expenditure declarations by officials. Only then will there be public control in this area, and the agency will not work based on orders and instructions. It is well known that officials are mainly behind monopolism. If their income and expenses are known, not only will corruption decrease, but so will unfair competition and monopolistic practices. If the state registers are open, we will know exactly which company or property belongs to whom, what connections exist between them, and so on. Without these, it is clear that there is no real intention to fight corruption and monopolism in the country.