The “National Action Plan for the Development of Competition and Prevention of Monopolistic Activities for 2027–2029”, approved by Order of President Ilham Aliyev, envisages the transition of Azerbaijan’s competition policy from a legal framework to a stage of practical implementation and results-oriented management.

Latif Zeynalli, Head of the State Programs Division at the Center for Analysis of Economic Reforms and Communication (CAERC), stated that the National Action Plan, prepared following the adoption of the Competition Code in 2023, establishes a concrete framework for market diagnostics, ensuring competitive neutrality, the gradual transition of specially regulated sectors to a competitive market model, strengthening scientific and analytical capacity, and developing institutional cooperation. The document defines comprehensive measures aimed at expanding market access, stimulating private investment, and supporting sustainable economic growth.

The Head of the CAERC Division noted that international practice places particular emphasis not only on identifying monopolistic behavior and taking appropriate measures to improve the effectiveness of competition policy, but also on identifying in advance and assessing the impact of legal, administrative, structural, and technological factors that may affect competition in the market. In this regard, the OECD’s “Competition Assessment Toolkit” methodology enables the assessment of how laws, licensing and permitting procedures affect the number of market participants, their ability to operate, incentives to compete, and consumer choice. The “Competitive Neutrality Toolkit” is aimed at promoting a level playing field for state-owned and private enterprises when the state acts as an owner, regulator, or market participant. In OECD countries, alongside ensuring equal competitive conditions for state-owned and private enterprises, potential cartel arrangements in public procurement are monitored based on specific risk indicators.

Latif Zeynalli stated that the rapid development of digital markets makes it necessary to complement traditional antitrust tools with preventive and market-specific regulatory mechanisms. To this end, the European Union, under the “Digital Markets Act”, has established preventive obligations for major digital platforms to prevent the unjustified preferential treatment of their own services, ensure business users’ access to data, and expand consumer choice. In the United Kingdom, the “Digital Markets, Competition and Consumers Act” and the “Digital Markets Competition Regime” provide for tailored conduct requirements for digital companies with strategic market power, taking into account the specific characteristics of the relevant market. International experience demonstrates that the development of competition ultimately facilitates the entry of new participants into markets, encourages businesses to reduce costs and introduce innovations, and improves price, quality, and choice for consumers. In this regard, the economic impact of the National Action Plan may materialize through reduced regulatory barriers, stronger competitive pressure, increased productivity, higher private investment, and support for sustainable economic development.

Latif Zeynalli added that the three priority areas identified in the National Action Plan bring together various elements of competition policy within a unified framework. The priority area “Improving Regulatory and Assessment Tools for Competition Development” will enable more accurate diagnostics of the current state of markets and support evidence-based decision-making. The area “Developing Scientific and Analytical Capacity and Competition Culture in the Field of Competition” will support the application of modern methodologies, the development of relevant knowledge and professional competencies, as well as increased awareness among market participants and consumers. Meanwhile, the area “Expanding Cooperation and Institutional Capacity in the Field of Competition” will serve to strengthen coordinated action among government institutions, entrepreneurs, higher education institutions, and international partners. The implementation of these areas in an integrated manner will contribute to strengthening the institutional sustainability of competition policy, further improving the business and investment environment, and ultimately supporting sustainable economic growth.