Georgia's Sakonkurencio Saagento (Competition Agency of Georgia) has entered a phase of noticeably heightened enforcement activity. Investigations into market dominance abuse and cartel conduct have increased in frequency. Merger notification reviews are being scrutinised more closely than at any point in recent years. International companies operating in Georgian markets – particularly those in retail, energy, telecommunications, and financial services – face real exposure if internal compliance programmes have not kept pace.
Georgia's competition authority has strengthened enforcement of competition legislation, raising penalties for market dominance abuse, cartel conduct, and failure to comply with merger notification obligations. Businesses meeting defined turnover and market-share thresholds are directly affected. Companies with existing or planned operations in Georgia should complete a compliance review before the end of the second quarter of 2026 to avoid exposure to fines and remedial orders.
This alert sets out what has changed, which business categories are affected, and the immediate steps international companies should take now.
What has changed: enforcement priorities and penalty escalation
Georgia's competition legislation has been progressively aligned with international standards over the past several years. The most significant recent development is the competition authority's shift toward proactive, evidence-led investigations rather than purely complaint-driven processes.
Three areas now attract the authority's primary attention.
Market dominance: The authority has expanded its definition of conduct that may constitute an abuse of market dominance. Pricing practices, exclusivity arrangements, and refusal-to-deal scenarios are all under active review. Companies holding a dominant position – broadly understood as a situation in which a single undertaking can act with material independence from competitive pressure – face heightened scrutiny of their commercial terms.
Cartel conduct: Price-fixing, market allocation, and bid-rigging remain the authority's highest enforcement priority. Investigations are now initiated on the authority's own motion, using documents obtained through dawn raids and digital data requests. A leniency programme is available for cartel participants who self-report and cooperate fully. The programme can reduce or eliminate fines, but access depends on timing: the first party to report receives the greatest benefit.
Merger notification: The authority has clarified thresholds for mandatory pre-merger notification. Transactions that exceed the prescribed turnover levels in Georgia require prior clearance. Closing a notifiable transaction without clearance – gun-jumping – now attracts a specific and separate penalty. The authority has signalled its intention to pursue remedial orders, not merely financial sanctions, in cases of procedural non-compliance.
Penalties under Georgia's competition legislation are calculated as a proportion of the infringing undertaking's annual turnover in Georgia. For the most serious infringements, the ceiling is substantial. Repeat infringements or obstructing an investigation attract additional uplift.
Who is affected: threshold criteria and business categories
The enforcement shift affects international companies across several sectors. The following criteria indicate material exposure.
- Annual turnover in Georgia above the prescribed notification threshold – companies at or near this level should verify current figures against the latest regulatory guidance.
- Market share that approaches or exceeds the level at which dominance is presumed under Georgian competition legislation.
- Participation in trade associations, purchasing consortia, or any information-sharing arrangement with competitors in the Georgian market.
- Pending or planned M&A transactions involving Georgian-registered entities or assets generating revenue in Georgia.
- Franchise, distribution, or exclusive supply agreements that restrict a counterparty's pricing or territorial freedom in Georgia.
Sectors under active monitoring include: retail and fast-moving consumer goods, banking and insurance, fuel distribution, construction materials, pharmaceuticals, and telecoms. Foreign-headquartered groups with Georgian subsidiaries are treated as single economic units for the purpose of calculating market share and turnover.
To receive an expert assessment of your company's competition law exposure in Georgia, contact us at info@ferrazwhitmore.com.
What to do now: immediate actions for international companies
The compliance deadline for companies operating in Georgia is immediate. The authority has made clear that ignorance of the rules does not mitigate penalties. The following actions should be initiated without delay.
1. Conduct a market position review. Determine whether any Georgian entity in your group holds, or could be characterised as holding, a dominant position. Map the relevant product and geographic markets. Document the methodology. This analysis provides both a compliance baseline and a first line of defence in the event of an investigation.
2. Audit commercial agreements. Review all distributor, franchisee, and supply contracts for clauses that restrict pricing, territory, or customer allocation. Identify any provisions that replicate the conduct profiles currently targeted by the authority. Amend or terminate non-compliant terms before they become the subject of a complaint or own-motion inquiry.
3. Verify merger notification obligations. If your group has completed or is planning any transaction involving Georgian turnover, confirm whether the transaction was or is notifiable. Retroactive non-compliance with merger notification requirements carries separate sanctions. For planned transactions, build the notification timeline into deal scheduling from the outset.
4. Review trade association participation. Any form of information exchange with competitors – pricing data, capacity figures, future commercial intentions – carries cartel risk under Georgian competition legislation. Obtain legal review of all association memberships and any industry data-sharing protocols before the next participation event.
5. Assess leniency eligibility. If your group is aware of past or continuing conduct that may constitute a cartel infringement, obtain specialist advice on Georgia's leniency programme immediately. The window for first-mover advantage narrows the moment another participant reports or the authority opens an investigation. Acting early can reduce exposure substantially.
For guidance on competition law compliance and investigations in Georgia, our team can provide a structured risk review tailored to your sector and business model.
Companies facing related commercial or contractual disputes in Georgia may also benefit from reviewing our guidance on corporate disputes in Georgia.
For broader regional context, our alert on competition enforcement trends in Russia provides a comparative CIS perspective.
About Ferraz & Whitmore
Ferraz & Whitmore is an international law firm based in Lisbon, advising business clients across 46 jurisdictions. Our competition law practice covers enforcement defence, merger notification, cartel investigations, and leniency applications across high-growth and emerging markets, including Georgia and the wider CIS region. Engaging a lawyer in Georgia with cross-border experience is essential when enforcement regimes are evolving rapidly. As an international law firm in Georgia matters, we combine Portuguese civil law expertise with English common law tradition to deliver results-oriented counsel. Our attorneys have advised on competition investigations and merger clearance processes across both civil law and common law systems. The firm's network of local counsel in Tbilisi supports time-sensitive regulatory responses. To discuss your competition law situation in Georgia, contact us at info@ferrazwhitmore.com.
Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. Ferraz & Whitmore assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@ferrazwhitmore.com.