Competition Committee fines Shaffof Sement Sanoat cement company for price manipulation
The Shaffof Sement Sanoat company in Uzbekistan has recently come under scrutiny for engaging in unfair business practices that resulted in unjustified profits. An investigation conducted by the Competition Committee of Uzbekistan revealed that the company had earned 669 million UZS through the sale of cement at inflated prices, bypassing official exchange regulations.
It was found that Shaffof Sement Sanoat sold 20,600 tons of cement through direct contracts, outside of the commodity exchange where construction materials are required to be traded to ensure fair pricing and market competition. The prices at which the cement was sold were significantly higher than the market rates established through the exchange’s trading sessions, leading to the conclusion that the company had manipulated the pricing process to gain unlawful profits.
Uzbekistan’s regulations mandate that companies sell high-liquidity and monopoly products through the commodity exchange to promote transparency and fair market practices. The Competition Committee found Shaffof Sement Sanoat’s actions to be in violation of these rules and took “appropriate measures” in response, although specific penalties were not detailed.
This is not the first instance of the Competition Committee penalizing companies in the cement industry. In a previous case, the Shangfeng – Bridge of Friendship cement plant was fined 4.9 billion UZS for dumping practices and restricting competition.
The latest case involving Shaffof Sement Sanoat demonstrates the Uzbek government’s continued efforts to crack down on unfair business practices in key industries, such as construction materials, which are vital to the country’s development projects. Measures are being taken to ensure fair market practices and prevent companies from engaging in activities that harm consumers and hinder market competition.
