ArmInfo. Alex Holding was fined 24.7 million drams for abuse in the sugar market. This decision was made at a meeting of the State Commission for the Protection of Economic Competition (SCPEC).
According to the source, market research revealed that from January 2018 to March 2020, Alex Holding abused its dominant position in the commodity market. We are talking, in particular, about unjustified price reductions, application of discriminatory conditions and prices, the use of which leads or may lead to restriction of economic competition. Alex Holding's actions were aimed at maintaining its share in the commodity market, including in the presence of cheaper sugar. The company reduced the price of imported sugar so that it could be sold at a competitive price, and in some cases at a loss to itself. As a result, enterprises that imported sugar at a price lower than that sold by Alex Holding faced difficulties. At the same time, the process of selling sugar is carried out by "Alex Holding" in such a way that it is economically inexpedient for business entities that are large buyers of sugar to import the product on their own.
By the decision of the Commission Alex Holding LLC was instructed to eliminate the violation within 1 month after the decision of the SCPEC entered into force, to bring conditions for the sale of sugar in accordance with the pricing policy, establishing clear, objective and non-discriminatory conditions for the sale of sugar. Earlier the SCPEC noted that the granulated sugar market in Armenia has a high degree of concentration. In the structure of imports and sales, the shares of economic entities have changed, the share of economic entities with the largest volume of imports and sales has decreased. Thus, the share of "Alex Holding" LLC and "Alex and Holding" owned by the Armenian oligarch Samvel Aleksanyan, as well as on the joint venture "Armen-Amik Ehbayrner", in terms of imports decreased from 67% to 49%, and in terms of sales - from 95 % up to 88%. Currently, granulated sugar is sold at a price of 270-280 drams per 1 kg against 380 drams last year.