The Agency for the Protection and Development of Competition of the Republic of Kazakhstan (AZRC) has improved approaches to analyzing the state of competition in commodity markets, taking into account international practice and recommendations of the Organization for Economic Cooperation and Development (OECD).
The changes were developed taking into account the recommendations of the OECD Expert Review of Kazakhstan’s competition law and policy for 2025 and are aimed at improving the quality of economic analysis, the objectivity of competition assessment, and the transparency of the decisions made..
The draft document underwent public discussion with the participation of the National Chamber of Entrepreneurs “Atameken” and industry business associations. The Agency considered the comments and suggestions received. One of the key changes was an increase in the timeframe for conducting an analysis of commodity markets.
The duration of the scheduled analysis has been increased from 6 to 12 months, and that of the unscheduled analysis — from 3 to 6 months. If necessary, the possibility of a one‑time extension of the period up to three months is provided. This measure takes into account the recommendations of the OECD, which noted that the previously established deadlines were significantly shorter than those used in the countries of the organization.
The economic component of the competition analysis has been strengthened. The updated Methodology предусматривает the use of additional tools for assessing market power, including the Lerner index and cross‑price elasticity of demand. The threshold values for market concentration indicators have also been clarified. This will allow for a more comprehensive assessment of the competitive environment, without being limited to the structural characteristics of the market.
To improve the objectivity of the conclusions, the period for studying market dynamics has been expanded. When conducting a planned analysis, it is planned to examine the state of the market over a five‑year period, establishing the cause‑and‑effect relationships that influence the development of competition. At the same time, approaches to assessing barriers to entry into commodity markets have been improved.
In addition, the sources of information used in the analysis have been expanded. In particular, it is planned to use data from tax and customs authorities on the actual sale of goods, which will increase the reliability of the initial data and the accuracy of the calculations.
Special attention is paid to ensuring competitive neutrality. As part of the planned analysis, it is necessary to assess the feasibility of the state’s presence in commodity markets, followed by the development of recommendations for promoting competition. In addition, a procedure has been established for identifying conglomerates based on the results of the analyses conducted.
In order to increase the transparency and predictability of the procedures, a unified list of criteria for selecting commodity markets for planned analysis has been established; the procedure for determining the start date and formalizing the results has been clarified. The conclusions based on the analysis will be signed by the head of the relevant division of the Agency. If new circumstances are identified, it will be possible to revise the conclusions.
The adopted changes are aimed at further aligning national approaches to competition analysis with the practices of OECD countries, increasing the justification of decisions made by the antitrust authority, and creating more transparent and predictable conditions for business activity.
Improving the Methodology will also make it possible to increase the effectiveness of identifying competition restrictions and developing measures to promote a competitive environment in the commodity markets of Kazakhstan.
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