BACKGROUND
MONGOLIA ADOPTED ITSFIRST DEMOCRATIC CONSTITUTION IN1992, TRANSITIONING TOA MARKET ECONOMY SYSTEM.
Under Article 5 of the Constitution, it is stated that "Mongolia shall have an economy based on different forms of property consistent with universal trends of world economic development and its own country's specifics.", "The State recognizes all forms of public and private property and shall protect the owners' rights by law.", and "The State shall regulate the economy to ensure the nation's economic security, the development of all forms of property, and the social development of the population.", respectively.
Within the above framework, the Competition Legislation was enacted in 1993 as an independent legal institute aimed at regulating competition, promoting fair practices, and protecting market participants from unfair competition1. These include the Law on Prohibition of Unfair Competition, the 2000 Law on Prohibition of Unfair Competition, and the 2010 Law on Competition.
LAW ON COMPETITION
The Law on Competition (2010), which is currently in force, governs the relations in connection with creating conditions for the fair competition of business entities in the market, prevention, prohibition, and restriction of domination in the market and anticompetitive activities, defining the legal basis of the regulatory body, and relations arising our of or in connection with them.
Business entity in natural monopoly
A business entity operating in a market where average social expenditure can be the lowest when there is only one entity supplying certain goods and products.
Business entity in dominant position
A business entity, alone or jointly with others, or Affiliates accounting for one-third or more percent of manufacturing, sales, or purchases in the market of certain goods and products. Despite not reaching the above percentage, a business entity may be considered to be in a dominant position if it is capable of causing hindrance to other entities from entering a market or forcing others out of the market, based on its product range, market geographic boundaries, market concentration, and market power.
Procedure for Determination as an Entity in Natural Monopoly and Dominant Position
Factors relevant to establishing a natural monopoly
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Footnote
1. “Relationship between competition law and other laws”, Munkh-Erdene. Te
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