Why is this important
The Committee for the Development of Competition and Consumer Protection checks whether companies use their position to pressure clients and partners. Companies with “excellent negotiating power” can unilaterally dictate the terms of a transaction, leaving no choice for clients. At the same time, they don’t even need to hold a dominant position in the market and be a monopolist. This situation affects the cost of services, consumer freedom of choice, and the possibility of competition among companies.
What happened
- The committee is conducting a study among parking operators in Tashkent and checking whether they have superior negotiating power.
- 35 enterprises have already been recognized as companies with such power.
- There are 66 companies in the country that can influence or impose prices, services, or transaction terms on consumers.
Superior negotiating power
Such a status of the enterprise allows it:
- impose the terms of the transaction;
- to restrict the territory where the client can receive a service or goods;
- to set prices for which the consumer does not have real market influence.
Such a status can be possessed not only by a monopoly company if it controls an important object, infrastructure, or has unique access to a service.
Examples in Tashkent
In the capital, the following are recognized as such enterprises:
- Interterminal — company associated with the commissioning of the railway line;
- CityNet — network connection operator in the multi-industry shopping complex Index Tashkent. The company provides internet provider services and monitors access to network infrastructure within the complex..
Context
- The status of “excellent negotiating power” allows companies to occupy a particularly advantageous position, dictate rules to other market participants, as well as consumers.
- Such companies can influence prices, deprive consumers of alternative choices, change conditions for their convenience, and curb competition.
- This makes the market less flexible and less competitive, and in some segments — practically closed.
