RETAIL RESTRICTIVENESS ANALYSIS IN EASTERN EUROPE RETAIL RESTRICTIVENESS ANALYSIS IN EASTERN EUROPE | Page 20

GEOGRAPHICAL EXPANSION RESTRICTIONS
When it comes to restrictions on geographical expansion, retail sector is subject to the general rules for
legal entities. Belarus and Russia are the only countries among analysed where different rules are set on
the geographical expansion of retail outlets. In Belarus and Russia, a food-retail business entity with more
than 20% and 25% of the market respectively, does not have the right to acquire or lease facilities within
the boundaries of the respective administrative-territorial entity.
MARKET SHARE RESTRICTIONS
The general EU regulation assumes that a business entity holds a dominant position if its market share
exceeds 40%. Dominant companies bear the responsibility that their behaviour does not distort
competition. However, in Germany, the local legislation determines a dominant position as a share
exceeding 30% 60 .
For non-EU countries, such regulations are not typical. Belarus and Moldova 61 are exceptions to the rules.
In Moldova and Belarus, the dominant market share is set 50% and 35% respectively.
FIGURE 13: SCORING BY “MARKET SHARE REGULATION" (0 – THE LEAST REGULATED COUNTRY, 6 – THE MOST
REGULATED ONE)
Source: Civitta analysis, 2019
PRICE REGULATIONS
Although price regulation is not typical for most of the products, even in the most liberalised states, the
government often controls tobacco and alcohol prices.
Lithuania 62 , Poland and Germany do not control price levels. Italy 63 , Spain 64 , Ukraine and Serbia 65 regulate
the alcohol and/or tobacco prices. Finally, Belarus 66 , Russia 67 and Moldova 68 also have mark-up regulations
on a variety of products that are considered to perform a social function.
60
http://www.vilf.de/fileadmin/user_upload/PDF/BDI_Leitfaden-Kartellrecht.pdf
http://lex.justice.md/ru/344792/
Interview with Competition council of the Republic of Lithuania
63
https://www.adm.gov.it/portale/monopoli/tabacchi/prezzi/prezzi_pubblico
64
http://www.hacienda.gob.es/es-ES/Areas%20Tematicas/CMTabacos/Paginas/PreciosLabores.aspx
65
https://www.paragraf.rs/propisi/zakon_o_duvanu.html (Article 67/Član 67)
66
http://sympa-by.eu/sites/default/files/library/policy_paper_retail_control_bipart.pdf
67
http://www.finexg.ru/gosudarstvennoe-regulirovanie-cen-v-torgovle/
68
https://base.spinform.ru/show_doc.fwx?rgn=32887
61
62
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