Tashkent, Uzbekistan (UzDaily.com) -- The Antimonopoly Committee of the Republic of Uzbekistan conducted an audit of UzAuto Motors in accordance with the requirements of the legislation and initiated a case against the company on grounds of violation of the Law of the Republic of Uzbekistan "On Competition". This was reported by the press service of the Antimonopoly Committee.

Today, on 19 August 2020, the case was considered at the next meeting of the special committee of the committee, during which the following was revealed. In particular, on the part of UzAuto Motors:

¬ When forming the main wholesale and retail prices for manufactured cars, a high monopoly price was applied due to an unjustified increase in costs, as a result of which prices for passenger cars increased by an average of 10.29%.

¬ Taking actions that discriminate against the rights and interests of consumers and business entities when selling cars through dealers, including conditions not related to the subject of the contract, other actions that may restrict competition, as well as abuse of their dominant position, which led to hindering the entry of others households.

The special commission studied the indicated cases in detail and instructed JSC "UZAUTOMOTORS" to eliminate the revealed violations.

These are, in particular:

First, the use of a monopoly high price in the formation of the cost of cars produced by a joint-stock company by including raw materials and materials, fuel and energy resources and unrealized labor costs and other costs or work in progress in the price of goods, including the approved prices in March 2020, which are valid today and for which they are sold to consumers must be deducted and returned to consumers:

- The retail price of the Spark LS M / T modification is 3 002 010 soums and LT A / T modifications for 3,563,704 soums;

- The retail price of Nexia 3 modification LT M / T for 3 112 039 soums and modification LTZ A / T for 3 792 325 soums;

- The retail price of Cobalt modification LT M / T for 4 404 493 soums and modification LTZ A / T for 10 526 707 soums;

- The retail price for the Gentra car of the SX M / T modification is 13 825 248 soums, the SX M / T CNG modification is 13 718 618 soums. and modification of CDX A / T Plus for 19 806 932 soums;

- The retail price of the Damas DLX modification will be reduced by 15 458 984 soums, the VAN modification by 15 746 315 soums and the Labo modification by 13 052 930 soums.

Secondly, future contracts for the sale of passenger cars (from the moment of this decision) should be based on prices formed by deducting the aforementioned unreasonable costs, or, based on the company’s marketing strategy, taking into account a price reduction of 10.29% and ensuring the reduction of unreasonable costs by 942 891 108 031 soums.

Based on the above, new car prices should be submitted to the Committee.

Thirdly, to ensure the sale of cars produced by UzAuto Motors to consumers only in strict accordance with the sequence of contracts concluded through the program "UzAvtoSavdo".

Fourth, to ensure the sale of export-oriented cars in the domestic market, in case of their return from export or other reasons for which the export did not take place, through equal distribution through dealers.

Fifthly, to ensure equal conditions for existing dealers and business entities wishing to engage in dealer activities, and also not to take action to restrict competition.

Sixth, remove the clause from the agreement with the dealer Azimavtomotive LLC on prepayment in the amount of 10 billion soums.

Seventh, an obligation is imposed to ensure equal conditions for all participants when dealers conclude distribution agreements for the sale of cars on special installments.

The committee also informed that within a month the decision can be appealed to the Collegium of the Antimonopoly Committee of the Republic of Uzbekistan or to the appropriate administrative court.