1.1 Underlying issues of competition regulations

General principles of protection of consumers rights and state guarantees of prevention of unfair competition and monopoly activity in Azerbaijan are provided by the Articles 15, 16, 31, 39, 50, 57, 59, 68, 71 and 72 of the Constitution of the Azerbaijan Republic dated 12 November 1995.

1.1.1. International and intergovernmental agreements, treaties and regulations on anticorruption and competition

• The Set of Multilaterally Agreed Equitable Principles and Rules for the Control of Restrictive Business Practices, United Nations, 1980;
• General Principles on the Protection of Consumers Rights approved by the General Assembly of UN No 39/248, dated 09 April 1985;
• CIS Intergovernmental Treaty on the Implementation of a Coordinated Competition Policy, dated 23 December 1993;
• Competition related extracts from the "Partnership and Cooperation Agreement" signed between the European Communities and their Member States and the Republic of Azerbaijan. European Council and Commission Decision, dated 31 May 1999 (99/614/EC, ECSC);
• Agreement for Implementation of the Harmonized Antimonopoly Policy, dated 25 January 2000 (effective in Azerbaijan since 04 November 2000)
• Annex 1. Regulations on the Prevention of Monopolistic Activity and Unfair Competition, dated 25 January 2000
• Annex 2. Regulations on the Interstate Council for Antimonopoly Policy, dated 25 January 2000;
• European Neighbourhood Policy (Article 66), (Decision of the EC on the 18 June 2004 on adoption of Azerbaijan as a member);
• Agreement for Cooperation of the CIS Member States in the Sphere of Regulation of Advertising Activity, dated 19 December 2003;
• Treaty on Cooperation between the Government of Azerbaijan and the Government of Bulgaria in the sphere of antimonopoly policy and protection of competition, 2007.

1.1.2. Codes

• Civil Code of the Azerbaijan Republic effective from 01 September 2000 (ratified by Law No 779-IQ, dated 28 December 1999 and gained legal effect by Law No 886-IQ, dated 26 May 2000);
• Administrative Infringement Code of the Azerbaijan Republic effective from 01 September 2000 (ratified by Law No 906-IQ, dated 11 July 2000);
• Criminal Code of the Azerbaijan Republic effective from 01 September 2000 (ratified on 30 December 1999).

1.1.3. Laws

• Law on Antimonopoly Activity, No. 526, dated 04 March 1993
• Law on Protection of Consumer Rights, No.1113, dated 19 September1995
• Law on Unfair Competition, No. 1049, dated 02 June 1995
• Law on Natural Monopolies, No. 590-IQ, dated 15 December 1998

1.1.4. Presidential Decrees and Resolutions

• Decree of the President of the Azerbaijan Republic "On Ensuring the activity of the State Service for Antimonopoly Policy and Protection of Consumers' Rights under the Ministry of Economic Development of the Azerbaijan Republic" (and also on approval of the Statute of the State Service for Antimonopoly Policy and Protection of Consumers' Rights under the Ministry of Economic Development of the Azerbaijan Republic), No 203, dated 25 December 2009;
• Decree of the President of the Azerbaijan Republic "On Improvement of the activity in the sphere of Antimonopoly Policy and Protection of Consumers' Rights" No 113, dated 24 June 2009;
• Decree of the President of the Azerbaijan Republic "On implementation of the Law "On Natural Monopolies" of the Azerbaijan Republic" No 107, dated 12 March 1999.

1.1.5. Regulations of the Cabinet of Ministers

• Rules "On Consideration of the Issues concerning violation of Antimonopoly Legislation" approved by the Cabinet of Ministers of the Azerbaijan Republic regulation "On Approval of the Rules on Consideration of the Issues concerning violation of Antimonopoly legislation" No 120 of 29 May 1998.

1.1.6. Legal-Normative Acts of the Central and Local Executive Power Bodies regulating antimonopoly and competition policy issues in Azerbaijan

• Rules "On Protection of Consumers' Rights and the Requisite Documents issued for violation of the legislation on Advertisements and the order of their Usage" approved by the State Service for Antimonopoly Policy and Protection of Consumers' Rights under the Ministry of Economic Development of the Azerbaijan Republic, No 2989, dated 05 September 2003;
• Rules "On Implementation of the Control Measures carried out in the Consumer Market" approved by the State Service for Antimonopoly Policy and Protection of Consumers' Rights under the Ministry of Economic Development of the Azerbaijan Republic, No 3544, dated 02 July 2007.

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1.2. Antitrust authorities: structure and competencies

The state policy on prevention, restriction and suppression of monopolistic activity and unfair competition and on the coordination of activities of state bodies in this sphere is carried out by the State Service for Antimonopoly Policy and Protection of Consumers' Rights under the Ministry of Economic Development of the Azerbaijan Republic ("AMSAR") within the limits of its authorities and competences as provided by law and the Statute of AMSAR approved by the Decree of the President of the Azerbaijan Republic "On Ensuring the activity of the State Service for Antimonopoly Policy and Protection of Consumers' Rights under the Ministry of Economic Development of the Azerbaijan Republic" No 203, dated 25 December 2009.

AMSAR was established to replace the former "State Antimonopoly Service and the State Service on Control over the Consumer Market" under the Ministry of Economic Development of the Azerbaijan Republic in accordance with the Decree of the President of the Azerbaijan Republic "On Improvement of the activity in the sphere of Antimonopoly Policy and Protection of Consumers' Rights" No 113, dated 24 June 2009;

In fact, according to its Statute and the relevant Presidential Decrees on implementation of the antimonopoly and competition laws of Azerbaijan, AMSAR is delegated substantial powers and competences to regulate antimonopoly policy and unfair competition. The orders issued by AMSAR within its competences provided by law on the prevention, restriction and suppression of the monopolistic activity are legal requirements.

There are also some other entities such as state bodies (State Service on Supervision over the Consumer Market under the Ministry of Economic Development, The Hygienic-Epidemiological Center under the Ministry of Health, The State Agency on Standardization, Metrology and Patent of Azerbaijan, etc.), public unions and associations, NGOs, etc. that are actively involved (within the limits of their powers and competences) in the process of prevention and restriction of antimonopoly activity and unfair competition in Azerbaijan (for example, the "Union of Independent Consumers", registered as an NGO in Azerbaijan).

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1.3. Extraterritoriality

The provisions of the Azerbaijani antimonopoly and unfair competition laws are valid and effective in the territory of Azerbaijan Republic and are applicable to all legal entities and natural persons. These laws shall also apply to cases when agreements and contracts concluded between economic subjects, executive power and administrative bodies with natural persons and legal entities of foreign countries lead to direct or indirect prevention, restriction or distortion of competition within the Azerbaijani market. However, the antimonopoly regulations shall not be applicable to relationships resulting from the rights of economic subjects to inventions, trade marks and authorship with the exception of deliberate use of such rights with the aim of restriction of competition.

As Azerbaijan (represented by AMSAR) is an adopted partner of the European Neighbourhood Policy ("ENP") under the Decision of European Commission of 18 June 2004, it is also actively involved in the process of cooperation with the European Commission and with other ENP partners in relation to antimonopoly regulations and infringements of competition and antimonopoly laws.

AMSAR also closely cooperates with the other CIS countries in the antimonopoly and competition area within the framework of the Interstate Council for Antimonopoly Policy (ICAP), established in 1993 for the purposes of coordinating activities among member states in the sphere of competition, the rapprochement of national laws and the creation of a legal basis for the elimination of monopolistic activities and unfair competition in the CIS common economic area. The main principles of coordination and cooperation among the CIS countries in the competition sphere are outlined in the Intergovernmental Treaty on Implementation of a Coordinated Competition\Antimonopoly Policy, signed on 23 December 1993 in Ashkhabad (Turkmenistan).

The 7th (on 02-04 October 1996), 22nd (26 September 2005) and 26th (20-21 September 2007) sessions of the Interstate Council for Antimonopoly Policy were held in Baku, Azerbaijan.

Azerbaijan (represented by AMSAR) is also a member of the International Competition Network (ICN), which is the only international body focusing exclusively on competition law enforcement. Its members represent national and multinational competition authorities.

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