Monopoly threshold raised to 40%: how will Tajikistan’s new competition law affect prices?

Tajikistan’s new competition law has expanded the powers of the Antimonopoly Service, allowing it to conduct unannounced inspections, review company mergers and oversee state aid to businesses. The law also raises the market share threshold for determining a company’s dominant position from 35% to 40%.
The new law contains 28 articles and replaces the legislation adopted in 2017. It was approved by the Majlisi Namoyandagon (Tajikistan’s lower house of parliament) on June 26 and the Majlisi Milli (Tajikistan’s upper house of parliament) on October 17, before being signed by President Emomali Rahmon on October 21. It entered into force upon official publication.
What does a «dominant position» mean?
Under the previous law, companies with a market share of between 15% and 35% could be classified as dominant. The new legislation raises the main threshold to 40%.
Companies controlling more than 40% of a particular market are now automatically considered dominant. Those with a market share of between 15% and 40% may also be classified as dominant following an assessment by the Antimonopoly Service. Companies with less than 15% are not considered dominant.
Businesses whose market share exceeds 40% are subject to additional regulatory requirements, including the obligation to coordinate their prices with the Antimonopoly Service.
The law also retains the existing rules on collective dominance. Up to three companies jointly controlling 50% of a market, or up to five companies controlling 70%, may be recognized as collectively dominant.
How is market dominance determined?
Under Article 8 of the new law, the Antimonopoly Service considers several factors when assessing whether a company holds a dominant market position:

• Its ability to set prices independently or operate without significant competitive pressure;
• Its market share, scale of operations, access to resources and position within the supply chain compared with competitors;
• Economic, technological, administrative or other barriers preventing new companies from entering the market or existing competitors from expanding;
• The extent to which buyers can counterbalance the company’s market power;
• The availability of alternative products that consumers can use as substitutes;
• Whether changes in prices significantly affect demand for the product.

These criteria allow the regulator to assess market dominance based not only on a company’s market share but also on its ability to influence competition and pricing.
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What changes for businesses?
The new law introduces three major changes affecting company mergers, inspections and government support.

• Company mergers and acquisitions — The Antimonopoly Service must assess mergers and acquisitions to determine whether they could restrict competition. Although prior approval was required under the previous law, the review period has been extended from 10 to 120 days. Under the new rules, if the agency fails to issue a decision within the prescribed period, the transaction is considered approved.
• Unannounced inspections — The Antimonopoly Service now has explicit authority to conduct inspections without notifying businesses in advance. Inspectors may copy documents and seal premises as part of their investigations. The measure is intended to help uncover anti-competitive practices, including secret agreements between companies to coordinate prices. The previous law did not contain a separate provision regulating such inspections.
• Stricter oversight of state aid — The new legislation also tightens controls over government assistance to businesses, including tax and customs exemptions, subsidies, preferential loans and other forms of financial support. Previously, businesses could receive such assistance after submitting an application and obtaining approval. Under the new rules, state aid granted without notifying the Antimonopoly Service or before it issues an official decision is considered unlawful and must be returned to the state. The accompanying infographic provides a detailed comparison of the old and new rules, including market share thresholds, review periods and regulatory requirements.

How does the inspection moratorium affect the new law?
The competition law has come into force amid a government moratorium on inspections of small and medium-sized businesses.
On October 28, President Emomali Rahmon signed a decree introducing a moratorium on such inspections until January 1, 2029.
Under the decree, government agencies other than tax authorities are prohibited from inspecting small and medium-sized businesses during this period.
This raises questions about how the Antimonopoly Service’s newly expanded inspection powers will operate while the moratorium remains in effect.
Monopoly threshold raised to 40%: how will the new competition law affect market prices?

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