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.