"Much in the competition Code will depend on the political will and the court”

Recently, President Ilham Aliyev has given his approval for Azerbaijan's Competition Code, slated to come into effect on July 1, 2024. The legislation, adopted in parliament last December, is expected to usher in financial sanctions for violations of competition legislation.

The new code is poised to dismantle barriers to market entry, paving the way for the development of micro, small, and medium-sized businesses. Authorities anticipate that this will stimulate job creation, foster economic growth, and contribute to a more competitive marketplace.

According to the antimonopoly and state control service for the consumer market, the Competition Code will play a pivotal role in eliminating obstacles to market entry, particularly benefiting smaller enterprises. The service emphasized that the growth of small and medium-sized businesses will lead to job creation and a more diverse market, ultimately driving down prices for consumers.

MP Rufat Guliyev, in an interview with Turan, underscored the omnipresence of competition in market economies, asserting that it plays a crucial role in price formation. He noted that Azerbaijan, as a smaller country, faces certain market limitations, but the new Competition Code will serve as a powerful tool to ensure a free and competitive market.

Guliyev emphasized that the legislation targets opportunistic entrepreneurs and companies attempting to artificially raise prices. By curbing such practices, the law aims to level the playing field for market entry and exit conditions.

While acknowledging the positive aspects of the Competition Code, economist Natig Jafarli, in an interview with Radio Azadlig, highlighted that the proposal for such legislation was initially made in 2007. He noted that lobbying groups with vested interests obstructed its acceptance over the years, underscoring the significance of political will in its successful implementation.

Jafarli emphasized that the legislation alone is not a panacea for all economic issues and stressed the need for political determination and an effective judiciary to enforce and implement the code. He expressed concerns about the potential for large companies to manipulate the system during the initial six-month grace period before the law takes full effect, urging vigilance in its enforcement.

It is expected that the Competition Code will become an essential tool in changing Azerbaijan's economic relations, promoting healthy competition and creating a fairer business environment.