LAW OF THE REPUBLIC OF MOLDOVA CONCERNING RESTRICTIONS ON MONOPOLISTIC ACTIVITIES AND DEVELOPMENT OF COMPETITION The present Law regulates

the organisational and legal framework of the development of competition, provides measures for preventing, restricting and forbidding monopolies and is aimed at providing conditions for the creation and operation of the market economy in the Republic of Moldova. Chapter 1. GENERAL PROVISIONS rticle 1. !"#$R$ %& 'T( M%'%"%L(!T(C R$)*L T(%'!. 1. This Law governs relationships between regulatory authorities and entrepreneurial entities which carry out activities on the republican +national, commodity market +hereinafter -market.,. The Law applies in those cases where actions undertaken by entrepreneurial entities and regulatory authorities, or agreements concluded by them outside the Republic of Moldova, lead to restrictions or limitations on competition or other negative conse/uences in the market. 0. The Law does not apply to activities of entrepreneurial entities and regulatory authorities which economic activity according to the legislation are state monopolies. 1. Relationships involving the legal protection of inventions, industrial samples, trademarks and copyrights, as well as activities on the securities market and intellectual activities, are governed by other laws. rticle 0. R$)*L T%R2 *T#%R(T($! T# T "R%T$CT ) ('!T M%'%"%L($!.

1. !tate policy concerning facilitation of competition and restriction on monopolistic activities is the responsibility of the !tate Committee of T#$ R$"*3L(C %& M%L4%5 on $conomic Reform (ssues +hereinafter Committee for $conomic Reform -C$R.,. 0. The main tasks of the C$R in the sphere of anti6monopolistic regulations are7 to establish measures for developing market oriented relations on the basis of development of entrepreneurship and competition8 to prevent restrict and suppress monopolistic activities8 to monitor the compliance with anti monopoly legislation. 1. (n order to finance the development of competition and entrepreneurship, the )overnment hereby establishes a &und for support of entrepreneurship and development of small business. CHAPTER II. MONOPOLISTIC ACTIVITIES rticle 1. 3 ''(') T#$ $'TR$"R$'$*R( L $'T(T($! "%!(T(%' %' T#$ M R9$T. 3*!$ %& T#$(R 4%M(' 'T

1. The activities of dominating entrepreneurial entities on the market that would limit competition and infringe interests of other entrepreneurial entities or citi:ens, including7 withdrawing commodities from circulation in order to create and maintain a deficit in the market or increase prices8 re/uiring contractor to comply with conditions that infringe upon a contract or re/uirements that are not profitable for him and are not related to the sub;ect matter of the contract +i.e. providing financial resources, including foreign currency, raw materials, products, accommodations, labour force, etc.,8 introducing discriminatory conditions into the

contract that would put the contractor in an une/ual position with respect to other entrepreneurial entities8 re/uiring a contractor to conclude a contract only under condition that it include provisions involving commodities in which the contractor +consumer, is not interested8 obstructing the access of other entrepreneurial entities to the market8 and violating legally established procedures for pricing commodities8 are not permitted. 0. n entrepreneurial entity with a share which does not e<ceed 1= percent of the certain commodities shall not be considered monopolistic dominating.

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1. Competing entrepreneurial entities which occupy dominating positions in the market are forbidden to enter into contracts +or enter into co6ordinated actions, and such contracts are considered invalid fully or partially according to established procedures if they lead to limiting competition, including contracts on the division of the market in terms of the territory, volume of sales and purchases, assortment of sold commodities on a range of sellers or purchasers8 on the removal from or restriction on the access to the market of other entrepreneurial entities as sellers of certain commodities or purchasers of them8 on the setting +sustenance, of prices, tariffs, discounts, increments with the view of infringement of competitorsF interests. 0. 'on competing entrepreneurial entities, one of which occupies a dominant position in the market and the other, which is its supplier or buyer, are forbidden to enter into co6ordinated actions, and such agreements are considered fully or partially invalid, if they lead or can lead to restricting competition. rticle =. '%' 4M(TT 'C$ %& CT(%'! *'4$RT 9$' *T#%R(T($! (M$4 T R$!TR(CT(') C%M"$T(T(%'. 32 R$)*L T%R2

1. Regulatory authorities are forbidden from adopting decisions and>or undertake actions aimed at restricting the independence of entrepreneurial entities or creating discriminatory or favourable conditions for the activity of certain entrepreneurial entities, if such decisions or actions lead or can lead to restricting competition and>or infringement of interests of entrepreneurial entities as well as forbidden from7 hindering the activities of entrepreneurial entities in a particular sphere, e<cept for the cases envisaged by the legislation8 giving instructions to the entrepreneurial entities about priority deliveries of commodities to a certain circle of buyers or priority in contracting without considering established priorities8 restricting the rights for sale +procurement, purchase, barter, of commodities8 hindering the establishment of new entrepreneurial entities in any sphere of activities, e<cept for cases where a regulatory authority acts within the legal framework8 offering to certain entrepreneurial entities discounts in ta<ation or other spheres, that are not envisaged by the legislation and thus putting them in advantageous positions in comparison with other entrepreneurial entities that market the same commodities. 0. (t is forbidden to establish ministries, departments or other state bodies with the intention of monopolising production and sale of commodities and it is also forbidden to provide e<isting ministries, departments or other regulatory authorities with power which when e<ercised leads or can lead to restricting competition. rticle C. 3 ''(') %& )R$$M$'T! C%%R4(' T$4 *T#%R(T($! (M$4 T R$!TR(CT(') C%M"$T(T(%'. CT(%'! %& R$)*L T%R2

greements +including co6ordinated actions, between regulatory authorities and entrepreneurial entities that lead or can lead to restricting competition and>or restricting entrepreneurial entities are forbidden and considered completely or partially invalid. greements +co6ordinated actions, are forbidden and considered invalid completely or partially, concluded between bodies of power or between a body of power and entrepreneurial entity, that lead or can lead to restricting competition and>or infringement of interests of entrepreneurial entities, including agreements +co6ordinated actions, with an aim to7 increase, decrease or support prices and tariffs, e<cept for cases outlined by law8 divide markets according to the territorial principle, volume of sales or purchases, assortment of commodities for sale or group of sellers and buyers8 limit access to the market or remove entrepreneurial entities from the market.

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rticle B. (LL$) L M R9$T.

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$ntrepreneurial entities are forbidden to undertake illegal actions, including7 discriminating false and distorted information, that can damage property and>or business reputation of another entrepreneurial entity8 misleading buyers concerning methods and places of production, features and /ualities of commodities8 unfair comparison by an entrepreneurial entity for the purpose of advertising of produced or sold commodities with commodities of other entrepreneurial entities8 use or disclosure of scientific technical, production and commercial information, as well as commercial secrets without the consent of these owners8 unwarranted use of a trade mark, company name or marking of commodities, as well as imitation of packaging and design of commodities of other entrepreneurial entities. CHAPTER III. PREVENTING AND RESTRICTION OF MONOPOLISTIC ACTIVITIES. rticle D. C%'TR%L %& T#$ "R%C$!! %& !$TT(') *" '4 TR '!&%RM T(%' %& $'TR$"R$'$*R( L $'T(T($!. 1. (n order to prevent businesses from occupying dominant positions in a market, it is necessary to control creation and transformation of unions, associations, concerns, inter branch, regional and other associations as well as transformation of regulatory authorities and entrepreneurial entities into the above mentioned types of association.. 0. (n order to create and transform a union, association or other associations of enterprises, the founders must submit information to the C$R about the principal types of activities of each entrepreneurial entity, its market share and its consent to ;oin the association. The C$R, within 1G days from the day of receiving the application must inform the applicant of its decision8 1. Registration of an association must be accomplished through a legally established procedures with the consent +approval, of the C$R. rticle A. C%'TR%L %5$R T#$ %3!$R5 'C$ %& 'T( M%'%"%L2 L$)(!L T(%' (' T#$ C%*R!$ %& "*RC# !$ %& !# R$!, !T%C9!, ('T$R$!T! &R%M T#$ !T T*T%R2 C "(T L %& $'TR$"R$'$*R( L $'T(T($!. The procurement by an entrepreneurial entity whose portion of a certain commodity e<ceeds 1= percent of shares, stocks, interests of the statutory capital of another entrepreneurial entity in the market for the same commodity, and the purchase by any legal entity or individual of the ma;ority share of the authorised capital of an entrepreneurial entity having dominant position in the market must be approved by the C$R. s used herein, -ma;ority share of the authorised capital. means the number of shares which provide for more than =G percent of the votes at a meeting of founders and shareholders. rticle 1G. T#$ C%M"*L!%R2 !$" R T(%' %& 3*!('$!!$!. The )overnment is entitled to make a decisions on the compulsory separation of entrepreneurial entities engaged in monopolistic activity and restricting competition if one or more of the following conditions occur7 the possibility of organisational and territorial isolation of subdivisions8 the lack of a close technological interrelationship of subdivisions +in particular, if the share of the internal turnover in the total volume of gross product of the entrepreneurial entity comprises less than 1G per cent,8 the possibility of separation of the spheres of activity of the structural subdivisions is limited by narrow specialisation in a certain commodity. rticle 11. ""$ L(') %& 4$C(!(%'! *'4$R RT(CL$! D,A '4 1G %& T#(! L E.

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(n the event that no answer is received within @= days of submission to the C$R of an application for the creation and reorganisation of a business or if there is a refusal by the C$R which the applicant considers not well grounded, the applicant may appeal to the court or arbitration. 4ecisions regarding compulsory separation of entrepreneurial entities and on purchase of shares of authorised capital may be appealed in the same manner. rticle 10. C%'TR%L %5$R "R(C$ &%RM T(%' M%'%"%L(!T(C "R%4*CT(%' '4 ! L$. &%R T#$ C%MM%4(T($! %&

1. The )overnment is entitled to control the price formation of commodities of the monopolistic production and sale. 0. Monopolistic e<tra profits received from two fold profitability and higher than the level of profitability established by the )overnment are additionally ta<ed. CHAPTER IV. RESPONSIBILITY FOR VIOLATION OF THIS LAW rticle 11. T#$ ('!TR*CT(%' %& C$R. 1. (f a business or regulatory authority violate this Law, C$R may issue a compulsory instruction in accordance with which the business should suspend the violation, rehabilitate the previous situation, annul or change the contract or arrangement or the illegal statement. 0. The order of C$R is to be implemented in the term specified in such order. The evasion of implementation or delayed implementation of the order will result in the conse/uences stipulated by this Law and other legislative acts. rticle 1@. "$' LT($! (M"%!$4 %' $'TR$"R$'$*R( L $'T(T($! '4 %&&(C( L!.

1. The C$R is entitled to impose penalties on entrepreneurial entities, officials of entrepreneurial entities and their management bodies for the following violations of this Law7 evasion of implementation or delayed implementation of the C$R orders, failure to submit necessary information to the C$R or submission of deliberately false information. 0. "enalties shall be imposed in accordance with the e<isting and shall be transferred to the state budget. rticle 1=. C%M"$'! T(%' &%R L%!!$! C *!$4 32 M%'%"%L(!T(C CT(5(T2. Losses of entrepreneurial entities or individuals resulting from monopolistic activity and illegal competition are recoverable through arbitration or court in accordance with e<isting legislation. CHAPTER Y. PROCEEDING AND APPEALS OF DECISIONS ON ANTIMONOPOLISTIC REGULATIONS rticle 1C. T#$ M$T#%4 %& "R%C$$4(') %' 5(%L T(%' %& T#(! L E. 1. C$R is authorised to consider cases on violation of this Law and to decide them within the limits of its ;urisdiction. The cases shall be considered on the basis of applications filed by entrepreneurial entities, regulatory authorities, consumersF societies and unions and also on the basis of materials submitted by the procuratorFs office, court, arbitration or may also be considered by the C$R on its own initiative.

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1. $ntrepreneurial entities, regulatory authorities and their officials may appeal to court or arbitration by means of an application which regulates that decisions of the C$R be declared fully or partially invalid or that decisions concerning the imposition of penalties be annulled or changed. 0. Ehile the application is being considered in the court or arbitration the implementation of decisions on imposition of penalties are not suspended until the court or the arbitration makes such a decision.

"resident of the Republic of Moldova Mircea !'$)*R Chisinau &ebruary 0A, 1AA0 DECREE OF THE PARLIAMENT OF THE REPUBLIC OF MOLDOVA ON ENACTMENT OF THE LAW ON RESTRICTIONS ON MONOPOLISTIC ACTIVITY AND DEVELOPMENT OF COMPETITION The "arliament of the Republic of Moldova decrees7 1. That the Law -Concerning restrictions on monopolistic activity and development of competition. shall be effective upon its publication. 0. The )overnment shall7 bring decisions into conformity with this Law by May 1, 1AA08 provide for review and invalidation of the legislative acts contradicting this Law by ministries and departments involved by May 1, 1AA08 submit to the "arliament draft pro;ects of amendments and additions to the e<isting legislation in accordance with this Law by Hune 1, 1AA08 adopt the !tatement on support fund for businesses and small business by Huly 1, 1AA0. The Chairman of the "arliament of the Republic of Moldova L$I '4R* M%! '* Chisinau &ebruary 0A, 1AA0

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