Anti monopoly moves not yet taken in Georgia
By Messenger Staff
Wednesday, August 3One of the most important demands from the EU towards Georgia concerns anti-monopoly legislation and the creation of an appropriate watchdog organization. So far Georgian leadership has been reluctant to take this step, evoking free trade arguments. In reality some analysts observe that the country’s economy tends to be in the hands of monopolies and oligopolies (a market dominated by a small number of sellers). According to official statistics, in 2010 only 15% of the business turnover was in the hands of small and medium size Georgian businesses while in 2000 this figure was 33%. This illustrates how competition in Georgian markets has significantly shrunk. As a result prices are increasing and quality is average. In comparison, small and medium businesses in Germany make up 40% of the economy and in Great Britain almost 60%. Analysts find that Georgian monopolies increase the financial burden for most citizens through unfair practices and the lack of competition.