On 26 January 2016 the Parliament of Ukraine adopted the Law of Ukraine “On Amendments to the Law of Ukraine “On Protection of Economic Competition” concerning the increase of efficiency of control over economic concentrations” (the “Law”).
The Law inter alia:
- Establishes new and higher thresholds which, once satisfied, require prior concentration approval by the AntiMonopoly Committee of Ukraine, in particular when:
- aggregate value of assets or aggregate sale turnover of goods of participants in concentration, taking into account relations of control, in the preceding financial year, including outside of Ukraine, exceeded the amount being the equivalent of Euro 30 million, wherein value (aggregate value) of assets or sale turnover (aggregate turnover) in Ukraine of at least two participants in concentration, taking into account relations of control, each exceeded the amount being equivalent of Euro 4 million; or
- aggregate value of assets or sale turnover of goods in Ukraine of the undertaking with respect to which a control is being acquired or the undertaking which assets, shares (equity interest) are being acquired into ownership or obtained for management or use, or of at least one of the founders of the undertaking being created, taking into account relations of control, in the preceding financial year, exceeded the amount being equivalent of Euro 8 million, wherein sale turnover of goods of one other participant in the concentration, taking into account relations of control, in the preceding financial year, including outside of Ukraine, exceeded the equivalent of Euro 150 million.
- Establishes that a simplified procedure for consideration of concentration approval filings within 25 calendar days may be applied if:
- only one participant in concentration effectuates its activities on the territory of Ukraine; or
- aggregate market share of participants on the same goods market does not exceed 15%; or
- market shares or aggregate market shares of the participants in concentration do not exceed 20% on the goods market on which there are sold products (goods, works, services) without acquisition or sale of which the business activity of any other participant in concentration becomes impossible.
- Establishes possibility of preliminary consultations with the Anti-Monopoly Committee regarding information and documents necessary for consideration of the concentration approval filing or concerted actions filing.
- Establishes possibility of coordination with the Anti-Monopoly Committee of obligations (which would remove relevant negative affect on competition) which the participants in concentration or concerted actions are prepared to take, if the Anti-Monopoly Committee has preliminary concluded that such concentration or concerted actions may be prohibited.
The Law also stipulates that the Anti-Monopoly Committee must refuse in consideration of the concentration approval filing if no information on ultimate beneficiary owners of the participants in concentration has been submitted. We note that no exception is made for publicly listed companies where ultimate beneficiary owners are unknown.
In addition, the amount of fees for filing for concentration or concerted actions and the fees for preliminary conclusions on concentration or concerted actions or recommendation guidelines have been increased by 4 times.
Once the Law is signed by the President of Ukraine it will come into force in 2 months after its publication.