The legal framework for combating monopolies and unfair competition in the context of national economic security
Abstract
The aim of the present article was to define structural and functional purpose with regard to the legal mechanism for countering monopoly and non-profit competition in the Republic of Azerbaijan in the context of the economic security of the state. The study was based on the analysis of the Constitution of the Republic of Azerbaijan, the Code on Competition, and related acts with reference to the implementation, materials of competition authorities, judicial practice, programme and strategic documents and international approaches. Constitutional-legal, formal-legal, systemic, institutional-legal, comparative-legal methods and the method of legal modelling were implemented. The analysis showed that the constitutional basis for competition protection rests on several interrelated principles. These principles encompass the state’s duty to prevent monopolism and unfair competition, the guarantee of freedom of enterprise, and the right to administrative and judicial protection. The Code on Competition of the Republic of Azerbaijan establishes a codified model of competition regulation. It covers the control of anti-competitive agreements, dominant positions, significant market power, unfair competition and economic concentrations. These substantive rules are combined with procedures for investigation, evidence assessment, the imposition of sanctions and the appeal of decisions. The preventive, monitoring, sanctioning and remedial functions of this mechanism have been determined. It has been argued that anti-competitive agreements are characterised by the coordination of market participants’ behaviour, whilst unfair competition consists of the unilateral acquisition of an unlawful advantage through deception, discrediting, imitation, the unlawful use of trade secrets or unfair advertising. An analysis of the competition authority’s records for 2023-2024, the case concerning “Azərbaycan Dəmir Yolları” QSC and the decisions of the Constitutional Court confirmed the application of certain procedures, sanctions, injunctions and judicial review, but did not provide grounds for concluding that the new Code is generally effective. Four areas for improvement were identified: increasing the transparency of the competition authority’s decisions; clarifying the criteria for significant market power and economic dependence; detailing the control of economic concentrations; and ensuring the competitive neutrality of the public sector. The findings may be utilised in regulatory, law enforcement and judicial activities, as well as in the development of competition compliance programmes