The Georgian Competition and Consumer Agency (GCCA) has completed an investigation initiated on the basis of a joint complaint submitted by auto importers and determined that LLC “Rustavi Auto Market” and LLC “Mikado Georgia” engaged in abuse of a dominant position in the market.
The investigation revealed that in 2023, the respondent undertakings operating within the territory of the Rustavi Auto Market, imposed unfairly high charges for the use of parking spaces. The parking fees were increased on multiple occasions, resulting in a significant discrepancy between the daily rate per parking space and the “cost-plus margin”. The Agency concluded that these actions constituted an abuse of dominant market position, specifically through the imposition of unfairly high prices.
According to the Agency’s decision, the respondent undertakings—identified through the investigation as a single economic entity—were jointly sanctioned with a total fine of GEL 848,276. Additionally, during the course of the investigation, each company was fined on three separate occasions for failing to provide complete information to the Agency, resulting in a combined penalty of GEL 26,000. The required information was ultimately obtained through a court order.
To promote a competitive environment in the sector and prevent the abuse of a dominant market position, the Agency issued a binding recommendation. Based on this recommendation, as well as the GCCA’s decision and international best practices, companies in a dominant position are required to implement pricing policies that proactively evaluate and reduce the risk of anti-competitive behavior.
The parties subject to the decision are entitled to appeal to the Tbilisi City Court within one month from the date of its issuance.
