The Competition and Consumer Protection Committee of Uzbekistan will refuse to approve the creation of state enterprises and their affiliated companies in markets where five or more private enterprises are already operating. Furthermore, the committee will annually assess competition in sectors related to state-owned companies slated for privatization and propose which state institutions should be privatized, liquidated, or retained.
These changes were introduced by Cabinet of Ministers Decree No. 520 of September 29, 2026. The document was adopted to implement laws on state property management and privatization, as well as Presidential Decree No. PP-123 of February 8, 2022, aimed at accelerating reforms of state institutions. The main goal of these measures is to accelerate the reduction of state participation in the economy and promote the formation of a healthy competitive environment.
Amendments were made to the regulation of the procedure for obtaining preliminary approval from the antimonopoly body for the creation and reorganization of enterprises with state participation and their affiliated structures, as well as for changes in their activities and the acquisition of shares and stakes.
Under the new version, the committee will deny permission to create or reorganize a company in which the state owns more than 50% or a greater share than any other shareholder, and it will also deny changing its field of activity if it does not meet any of the criteria for state property ownership established in Article 10 of the Law on State Property Management.
Even if a company meets these criteria or does not fall into this category, approval will be rejected in four cases. The first case is the creation of a state enterprise or its affiliated structure in a competitive sector where five or more private businesses are already operating in the relevant commodity or financial market.
The second case occurs if the founders are state bodies, khokimiyats, state institutions authorized to issue licenses or permits, conduct registration or accreditation, or state target funds planning to engage in the same activity. The third case concerns a company whose founder is a sole supplier or holds a dominant position if the new company uses the founder's goods, resources, or infrastructure when competing with private enterprises. An exception is made for separating such companies from the founder's structure provided they are given equal conditions with competitors.
The fourth case is when a state enterprise plans to engage in auxiliary activities unrelated to its core area in a competitive sector or acquire stakes in other companies operating in that sector. The last two restrictions do not apply if the company's creation is stipulated by presidential decrees and resolutions or Cabinet of Ministers decisions.
The decree also approved rules defining how the antimonopoly body prepares conclusions on companies whose state shares are planned for privatization, as well as proposals regarding state institutions.
The State Assets Management Agency submits an annual list of assets proposed for privatization in the following year to the committee by September 1. This list must include the name, tax identification number, legal form, address, size of the state share, the state body owning the share, and net income for the previous year.
Within 30 days, the committee will request information from state bodies regarding the level of competition in the relevant markets. After another 15 days, it will distribute the assets geographically and instruct its regional offices to prepare preliminary findings. The committee will present the final conclusion on the list to the agency by December 1. The agency will take this into account when preparing the annual privatization plan and will notify the committee in writing within two months about which assets were not included in the program and why. The committee will review the list within two months, conduct additional analysis, and submit proposals if necessary.
The agency provides the committee with information on state institutions annually by January 15, including their founders and areas of activity. The committee conducts an analysis by April 15 and sends proposals to the agency through the Davlat mulki information system by May 1. It may propose privatization, liquidation, or retention of the institution.
Institutions that do not meet the criteria for state property ownership will be proposed for privatization or liquidation. Other institutions will be proposed for privatization, liquidation, or retention depending on the level of competition in the respective sectors. The agency will review these proposals and send them to the Cabinet of Ministers by September 1.
Data exchange between the agency and the committee will be carried out electronically through the integration of their information systems. Both organizations are obliged to ensure the confidentiality of the information they receive.