AlES incurred a fine for enforcing services within Almaty
The Almaty Electric Stations JSC (AO "AlES") has been found guilty of violating antitrust regulations in Kazakhstan, following an investigation conducted by the Almaty city department of the Agency for the Protection and Development of Competition. The case centered around practices that restricted fair competition in the electricity market.
Details of the Case:
The investigation revealed that AO "AlES" engaged in practices considered harmful to competition. These practices included abusing a dominant market position, restrictive agreements, or coordinated actions that distorted market fairness. The Kazakhstan Competition Authority reviewed pricing policies, contractual conditions, and market conduct relative to other market participants.
Subsequent Fine:
As a result of the investigation, AO "AlES" was fined 4.4 billion tenge. The fine serves as both a penalty for the violation and a deterrent against future anticompetitive behavior. The Industrial Zone, which houses 118 registered business entities with a total investment of over 400 billion tenge, was established to provide state support for private entrepreneurship and is intended for the development of priority industrial sectors in Almaty.
Background:
The investigation was initiated to protect the rights of market entities operating within the Industrial Zone of Almaty. To reduce costs for connecting and consuming energy resources, the state has laid networks directly connected to the grids of TEC-2 in the Industrial Zone. However, it was found that the Industrial Zone's energy supply is not connected to AO "AlES" networks, but to TEC-2 grids.
The Antitrust Violation:
AO 'AlES' was found to have compelled the energy-supplying organization to purchase electricity with an additional transmission service through the networks of an affiliated transmission organization, despite the absence of city electrical networks in the Industrial Zone. This practice effectively created barriers to competition in the electricity segment AO "AlES" operated in.
The court ruling against AO "AlES" for antitrust violations has legally taken effect. The case serves as a reminder of the importance of fair competition and the consequences of anticompetitive practices in Kazakhstan's market.
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