Kazakhstan's Agentstvo po zashchite i razvitiyu konkurentsii (Agency for the Protection and Development of Competition, "APDC") has intensified its enforcement posture in 2025. International companies operating in Kazakhstan – particularly those in natural resources, logistics, retail, and digital services – now face a materially higher risk of investigation, sanction, and reputational exposure than in prior years.
Kazakhstan's competition legislation has been amended to extend mandatory merger notification thresholds, strengthen penalties for cartel conduct, and formalise a leniency programme for voluntary disclosure. These changes took effect progressively from mid-2024 and apply in full from January 2026. Any company with market dominance in Kazakhstan, or engaged in cross-border transactions touching Kazakhstani markets, must review its compliance posture immediately.
This alert summarises the key regulatory developments, identifies the business categories most exposed, and sets out the immediate steps international companies should take.
What has changed – regulatory developments and effective dates
Kazakhstan's competition authority has pursued three parallel lines of reform. Each carries distinct compliance obligations for international businesses.
Extended merger notification rules. The amended competition legislation lowers the asset and turnover thresholds that trigger mandatory pre-transaction notification. Transactions that previously fell below the notification threshold may now require clearance. The revised thresholds apply to both domestic and cross-border deals where one or more parties have a presence in Kazakhstan. The effective date for the updated merger notification regime is January 1, 2026.
Tougher penalties for anticompetitive conduct. Administrative penalties for cartel infringement and abuse of market dominance have been recalibrated. Fines are now calculated as a proportion of the infringing party's annual revenue derived from the affected Kazakhstani market. This revenue-based approach replaces the previous fixed-penalty system and produces significantly larger sanctions for companies with substantial local turnover. Repeat infringements attract an enhanced multiplier. These penalty provisions entered force in July 2024.
Formalised leniency programme. The APDC has introduced a structured leniency programme enabling companies to seek immunity or fine reductions in exchange for disclosure of cartel conduct. The first party to self-report and cooperate fully may obtain full immunity. Subsequent applicants receive graduated reductions. The programme is available only to parties that have not coerced others into the arrangement. This mechanism is now codified in the competition legislation and is operational as of January 2026.
The APDC has also signalled, through published enforcement priorities, that digital markets and platform-based businesses will receive heightened scrutiny. The competition authority is examining whether pricing algorithms used by e-commerce and logistics platforms facilitate coordinated conduct – even absent explicit agreements between competitors.
Which businesses are affected – threshold criteria and exposure categories
The reforms affect a broad range of international companies. The following categories face the highest exposure.
Companies with market dominance in Kazakhstan. Under Kazakhstani competition legislation, a company holding a significant share of a defined product or geographic market may be classified as a dominant undertaking. Dominant companies face restrictions on pricing conduct, refusal to deal, and discriminatory terms. The revised rules tighten the evidentiary standard the APDC applies when establishing dominance – meaning the authority can act faster and with less preliminary burden.
Parties to cross-border mergers and acquisitions. Any M&A transaction where a target company operates in Kazakhstan. Alternatively. There. The combined entity will control assets or revenues above the revised thresholds in Kazakhstan, now requires pre-closing notification. Failure to notify is treated as a separate infringement under the competition legislation, independently of whether the underlying transaction raises substantive concerns. For international deal teams, this means Kazakhstan must be added to the merger notification checklist alongside EU and other CIS jurisdictions.
Industry associations and joint ventures. The APDC has prioritised enforcement against information-sharing arrangements that occur within trade associations and joint venture structures. Even where no price-fixing is alleged, exchanges of commercially sensitive data – cost structures, planned capacity, bidding intentions – can constitute cartel conduct. International companies participating in Kazakhstani industry bodies should audit their information-sharing practices without delay.
Logistics, energy, and digital services sectors. These three sectors have been named by the APDC as enforcement priorities for 2025 and 2026. Companies in these industries should treat the probability of an inquiry as elevated, regardless of the size of their Kazakhstani operations.
For companies managing related exposure across the region, our analysis of competition enforcement trends in Russia provides a useful comparative reference for CIS-wide compliance planning.
To receive a preliminary assessment of your company's exposure under Kazakhstan's revised competition rules, contact us at info@ferrazwhitmore.com.
Immediate action items for international companies
The combination of lower merger notification thresholds, revenue-based penalties, and an active leniency programme creates a sharply altered risk environment. Delay in addressing compliance gaps is itself a source of liability. The following steps should be completed before the end of Q2 2026.
- Audit existing market positions. Map each group entity operating in Kazakhstan against the current dominance thresholds in the competition legislation. Identify any product or geographic markets where the company holds or approaches a dominant position. Document the analysis to demonstrate good-faith compliance.
- Review pending and pipeline transactions. Instruct deal teams to apply the revised merger notification thresholds to all transactions closing after January 1, 2026. Add Kazakhstan to the jurisdiction checklist used by the M&A function. Allow adequate time for APDC review – clearance timelines under the amended rules can extend to several months for complex cases.
- Assess leniency eligibility. Where internal review reveals historic conduct that may constitute a cartel infringement, evaluate eligibility under the new leniency programme. The first-mover advantage is substantial. A company that delays disclosure risks losing immunity to a competitor that acts first.
- Update compliance policies and training. Revise internal competition compliance programmes to reflect the revised penalty regime and the APDC's stated enforcement priorities. Distribute updated guidance to commercial, pricing, and procurement teams operating in Kazakhstan.
- Engage local counsel for ongoing monitoring. The APDC publishes enforcement actions and guidance through its official channels. Retain a lawyer in Kazakhstan or an international firm with CIS competition expertise to monitor developments and receive early warning of sector-specific inquiries.
Companies facing existing or anticipated corporate disputes in Kazakhstan should also consider how a competition investigation may interact with ongoing commercial litigation or arbitration strategy.
For a tailored strategy on competition compliance in Kazakhstan, reach out to info@ferrazwhitmore.com.
About Ferraz & Whitmore
Ferraz & Whitmore is an international law firm based in Lisbon, advising business clients across 46 jurisdictions, including Kazakhstan and the broader CIS region. Our competition law practice supports international companies on merger notification, dominance assessments, cartel investigations, and leniency applications across civil law and common law systems. As an international law firm in Kazakhstan with cross-border reach, we advise on the intersection of Kazakhstani competition legislation and parallel proceedings in EU, CIS, and other jurisdictions. Our team has supported clients before the APDC and in related regulatory proceedings. The firm's Lisbon base provides direct access to EU regulatory systems, while our CIS experience covers enforcement environments from Almaty to Kyiv. We work with in-house legal teams, institutional investors, and international entrepreneurs who need a lawyer in Kazakhstan with both local knowledge and cross-border perspective. For a preliminary review of your competition exposure in Kazakhstan, contact us at info@ferrazwhitmore.com.
Our competition law services in Kazakhstan page provides a full overview of how we support clients at each stage of an APDC investigation or merger clearance process.
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.