The State Commission for the Protection of Economic Competition Initiates Proceedings Against Several Economic Operators in the Glove Sector

The State Commission for the Protection of Economic Competition of Armenia has initiated administrative proceedings against several economic operators regarding possible abuses of dominant position and/or potential anti-competitive agreements in the market of protective and medical gloves made of latex and nitrile during the period from March 16 to May 15, 2020.

It is noteworthy that the list of economic operators involved in the proceedings may be expanded during the investigation.

The investigation has been conducted in light of the Armenian government's decision No. 298-N dated March 16, 2020, on declaring a state of emergency in the Republic of Armenia.

The results of the study indicate that the pricing policies practiced by various economic entities in both retail and wholesale sectors, as well as the effects on the overall conditions of goods circulation in the commodity market, may contain features of potential violations of the Law on Protection of Economic Competition.

During the period from March to May 2020, there were manifestations of potentially unjustified price increases in the sale of gloves by wholesalers and retail chains, which led to higher costs for end consumers during that time. In particular, the average wholesale sale price for a pair of gloves in May 2020 was 31-86 AMD, while the average retail sale price ranged from 34-90 AMD.

You can review the commission’s decision here.