January 26, 2025: The Verkhovna Rada received a draft Law of Ukraine “On Amendments to the Code of Ukraine on Administrative Offenses (Regarding Liability for Violations of Legislation on the Protection of Economic Competition)” or Law No. 12441, which introduces a number of significant amendments to the Code of Ukraine on Administrative Offenses (CUAO) aimed at strengthening liability for violations of legislation on the protection of economic competition.

The main changes introduced by this draft law are as follows:

• Article 38 of the CAO: The time limits for bringing administrative liability for offenses provided for in Articles 166-3 and 166-4 of the CAO have been amended to to one year from the date of detection of the offense but no later than five years from the date of commission, and to one year from the date of detection of the offense but no later than three years from the date of commission, respectively.
• Articles 164-3, 166-1, and 166-2 of the Code of Administrative Offenses: Excluded from the Code of Administrative Offenses.
• Articles 166-3 and 166-4 of the Code of Administrative Offenses: Revised to provide more detailed regulation of liability for anti-competitive actions by government agencies, local self-government bodies, administrative and economic management and control bodies, as well as for violations of the procedure for submitting information and complying with decisions of the Antimonopoly Committee of Ukraine.
• Articles 221, 254, 255, 256, and 257 of the Code of Administrative Offenses: Amendments have been made to clarify the procedure for drawing up reports on administrative offenses under Articles 166-3 and 166-4 of the Code of Administrative Offenses, as well as the procedure for holding individuals liable for these offenses. In particular, the deadline for drafting a report has been extended to 3 days, and the procedure for sending the report to the person against whom it was drawn up has been regulated.

Consequences if the bill is signed by the President:

· Strengthening liability for anti-competitive conduct: The bill provides for increased fines for anti-competitive conduct by government agencies and other business entities, which should help reduce the number of such violations and create a more competitive environment in Ukraine. 

· Improvement of the procedure for holding parties accountable: Amendments to Articles 221, 254, 255, 256, and 257 of the Code of Administrative Offenses are aimed at clarifying and improving the procedures for holding parties accountable for violations of legislation on the protection of economic competition, which should ensure a more effective and fair application of the Code’s provisions.   

· Protection of Economic Competition: Overall, the bill aims to strengthen the protection of economic competition in Ukraine, which is a key factor in economic development and ensuring the well-being of citizens.

The main objective of this draft law is to resolve the legal conflict between the provisions of the Law of Ukraine “On the Protection of Economic Competition” and the Code of Ukraine on Administrative Offenses, which currently prevents individuals from being held administratively liable in certain cases. 

According to the explanatory note, the draft law addresses priority areas of Ukraine’s obligations in the field of European integration, including those under international law (Article 256 of Chapter 10 “Competition” of the Association Agreement). The provisions of the draft law are consistent with the articles of Council Regulation (EC) No. 1/2003 of December 16, 2002, on the implementation of the competition rules as set forth in Articles 81 and 82 of the Treaty on the Functioning of the European Union.

Therefore, we believe that the adoption of this Law and its entry into force are only a matter of time.