The Competition Protection Council Fines 'Alex Holding' 24.7 Million Drams for Abusing Dominant Position in the Sugar Market

Within the framework of a study conducted in the sugar market, the Armenian State Commission for the Protection of Economic Competition has decided to impose a fine of approximately 24.7 million drams on 'Alex Holding' LLC for abusing its dominant position.

The investigation revealed that during the entire period under review by the commission, from January 2018 to March 2020, 'Alex Holding' abused its dominant position in the commodity market, manifested in three types of violations: unjustified price reductions, discriminatory conditions and pricing, and the establishment or application of conditions or behaviors that lead to or may lead to the limitation, prevention, or prohibition of economic competition.

Specifically, the actions of 'Alex Holding' were aimed at maintaining its market share. This included situations where, despite the presence of cheaper sugar in the market, the company lowered the prices of its manufactured and imported sugar to enable sales at competitive prices, sometimes incurring losses.

As a result, it became economically impractical for those economic entities that imported sugar at prices comparatively lower than those offered by 'Alex Holding' to continue their activities in this sector. Meanwhile, the sugar sales process by 'Alex Holding' was conducted in such a way that it was not economically advantageous for large buyers, who possess economic capabilities and opportunities, to independently import sugar.

By the commission's decision, 'Alex Holding' LLC is required to eliminate the legal violations within one month after the decision enters into force by aligning its sugar sales conditions and pricing policies with the law, while also establishing clear, objective, and non-discriminatory conditions for sugar sales.