The Law on the Protection of Competition is of great importance to the development of market economy in the country, as competition is a crucial factor of market regulation. The Law establishes a prohibition against abuse of monopoly position and unfair competition.

Such a law is all the more needed in view of the fact that in the context of centrally planned economy socialist enterprises were the only ones allowed to engage in economic activity; on the other hand, in order to reduce costs, the government created huge monopolistic organizations which played a dominant role in both industry and trade.

The Law on the Protection of Competition also appeared as a necessary precondition for guaranteeing the activity of foreign investors, since with the development of the private sector a great many newly created enterprises undertook unscrupulous actions to the detriment of the interests of foreign investors.

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