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Gulf to Challenge the Competition Agency’s Conclusion in Court

The company Sun Petroleum Georgia operating chain of petrol stations under the Gulf brand intends to challenge the Competition Agency’s  decision in the court.

CBW  was told at Gulf  oil company.

They say that they are strongly against the Agency’s arguments and imposed fine, as Sun Petroleum Georgia is one of the largest employers and tax payers in Georgia that operates in accordance with transparent international standards. Its financial statements are audited by  Deloitte,  one of the world’s “Big Four” accountants.

In 2012-2014, the company has made  GEL 187 million in taxes to the state budget, employed 1 500 citizens, and donated for  charity more than a million. It should be noted that “Gulf” net profit in 2012-2014  amounted to GEL  6.2 million, while the fine imposed by the Competition Authority almost twice exceeds  this figure, which heavily influences  its activities and development plans.

Our main principles are open and fair competition and high quality service. The company plans to invest about GEL  30 million in infrastructure projects and employ  dozens of workers. We believe that such actions will negatively affect the company’s investment plans, will hinder its development and new jobs creation. All of this is contrary to policy announced priority by the government such as  to improve the business environment, create jobs and attract  investments in Georgia, which is needed for the country’s economy, “- they say in the company.

Wissol company also disagrees with the Competition Agency’s conclusion and  plans to prove its case through the legal ways. Recall that the Competition Agency   imposed   sanctions on five largest oil companies for violation of competition law. We are talking about Wissol (a fine in the amount of  GEL 10 426 393), LUKOIL ( GEL 4 740 260), SOCAR (GEL 14 381 385), Rompetrol (GEL 10 885 806) and Gulf (GEL 11 267 384) and three economic agents  which have close relations with the abovementioned  companies.

A total volume of the  fine reaches GEL  55 million. The head of the Competition Agency   notes  that the Agency was given a 10-month deadline to complete the survey, but it  was finished in 8 months ahead of schedule. Based on the results, the Agency  came to the conclusion that in the years 2008-2014 the companies have violated the principles of competition on the market, imposed artificial barriers and set bargain  price