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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