Antimonopoly Committee will audit "Astana LRT” upon the address of NCE
Why does the private company "rule" at the market of urban passenger transport?
The order of the Committee on Regulation of Natural Monopolies and Protection of Competition states "to conduct an audit during the period from July 23, 2015 to September 23, 2015 in order to investigate violations of antitrust laws in respect of the limited liability company "Astana LRT” on the grounds of suspicion of unfair competition".
The investigation will assess the contracts concluded with the private transport companies and companies of quasi-public sector to identify violations of antitrust laws.
Control over the execution of the order is assigned to the Deputy Head of the Department for Regulation of Natural Monopolies and Protection of Competition of Astana Abay Balabekov.
Let’s remind, after complaints of metropolitan private cap bus fleets, NCE addressed for assistance to Department for Regulation of Natural Monopolies and Protection of Competition. As reported the director of the Department of Legal Protection of entrepreneurs of NCE Oleg Savelenko, monopolization is taking place at the market of the capital. “Astana LRT” is a company established with 100% participation of Akimat of Astana (to which somehow were transferred some public control functions), as it is in charge of bus routes and interferes in economic activities of bus fleets. As a result, public monitoring revealed problems in the relationship between the Department of transport and private bus fleets.
"The primary problem - is unjustified termination of contracts for the right to service routes. Second - forcing of transport companies to use the services of the Center of qualification "Astana LRT”. Third, the high cost of services for dispatching, executed by “Astana LRT” – transport companies pay each month the organization about 30 million tenge for maintenance of routes", - he said.
In addition, according to Director of the Department, Department of passenger transport and highways of Astana prohibits the bus fleets to buy new buses, except for the French brand “Iveco”, sold by “Astana LRT”.
"Introduction of electronic ticketing is hindered. A new method profit of between transport companies is being imposed on. At the same time at the market of passenger transportation in Astana there is a large number of fake tickets. And finally, the transfer of the control functions of the Office of passenger transport and highways of Astana to a subordinated organization "Astana LRT” – is a big violation!" - Said Savelenko.
"Overall, we are seeing a massive increase in the share of the state's presence in the competitive environment in the face of "Astana LRT”, whose founder is the city administration", - said the lawyer.
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