Moratorium on Inspections by the Antimonopoly Committee Cancelled

28/ 02/ 2018

On February 23rd, 2018 Resolution of the Cabinet of Ministers of Ukraine “On the Approval of the List of Bodies of State Supervision (Control) which are not Covered by the Law of Ukraine On Temporary Peculiarities of Implementation of State Supervision (Control) Measures in the Sphere of Economic Activity No. 1104 as of December 18th, 2017 (hereinafter – the Resolution), which approved the list of state supervision bodies not subject to a moratorium on inspections. This list includes the Antimonopoly Committee and its territorial offices. Let us remind you that Article 2 of the Law of Ukraine On Temporary Peculiarities of Implementation of State Supervision (Control) Measures in the Sphere of Economic Activity No. 1728-VIII as of 03.11.2016 (hereinafter – the Law) established a moratorium on scheduled and unscheduled inspections (with some exceptions) until December 31st, 2018. Thus, at present, the Antimonopoly Committee has the right to carry out both planned and unscheduled inspections (so-called dawn raids) of business entities in cases for compliance with the legislation in the field of protection of economic competition. According to the Law On the Antimonopoly Committee of Ukraine in the field of monitoring the coordinated actions and concentration of the Antimonopoly Committee of Ukraine, officials of its territorial units, during inspections have the right to demand information from economic entities, including that with restricted access. In addition, they have the right to enter freely in the premises during inspections and investigations of cases of violations of the legislation on the protection of economic competition, subject to the presentation of a service certificate and documents confirming the conduct of the inspection or investigation. We draw your attention to the fact that for impeding the employees of the Antimonopoly Committee of Ukraine, its territorial office in conducting inspections, seizures or arrest of property, documents, objects or other media provided by the current legislation of Ukraine, the law provides for a fine of up to one percent of income (proceeds) of a commercial entity from the sale of products (goods, works, services) for the last reporting year preceding the year in which the fine is imposed.

On February 23^rd, 2018 Resolution of the Cabinet of Ministers of Ukraine “On the Approval of the List of Bodies of State Supervision (Control) which are not Covered by the Law of Ukraine “On Temporary Peculiarities of Implementation of State Supervision (Control) Measures in the Sphere of Economic Activity” No. 1104 as of December 18^th, 2017 (hereinafter – the Resolution), which approved the list of state supervision bodies not subject to a moratorium on inspections. This list includes the Antimonopoly Committee and its territorial offices.

Let us remind you that Article 2 of the Law of Ukraine “On Temporary Peculiarities of Implementation of State Supervision (Control) Measures in the Sphere of Economic Activity” No. 1728-VIII as of 03.11.2016 (hereinafter – the Law) established a moratorium on scheduled and unscheduled inspections (with some exceptions) until December 31^st, 2018.

Thus, at present, the Antimonopoly Committee has the right to carry out both planned and unscheduled inspections (so-called “dawn raids”) of business entities in cases for compliance with the legislation in the field of protection of economic competition.

According to the Law “On the Antimonopoly Committee of Ukraine” in the field of monitoring the coordinated actions and concentration of the Antimonopoly Committee of Ukraine, officials of its territorial units, during inspections have the right to demand information from economic entities, including that with restricted access. In addition, they have the right to enter freely in the premises during inspections and investigations of cases of violations of the legislation on the protection of economic competition, subject to the presentation of a service certificate and documents confirming the conduct of the inspection or investigation.

We draw your attention to the fact that for impeding the employees of the Antimonopoly Committee of Ukraine, its territorial office in conducting inspections, seizures or arrest of property, documents, objects or other media provided by the current legislation of Ukraine, the law provides for a fine of up to one percent of income (proceeds) of a commercial entity from the sale of products (goods, works, services) for the last reporting year preceding the year in which the fine is imposed.