Competition Committee fines cement company Shaffof Sement Sanoat for price manipulation

According to a statement from the regulatory authority, Shaffof Sement Sanoat sold 20,600 tons of cement through direct contracts over the course of 2023 and the first seven months of 2024. These transactions were conducted outside the commodity exchange, where construction materials are required to be traded in order to ensure fair pricing and market competition.

The committee's Fergana regional office, which conducted the investigation, found that the prices at which the cement was sold were significantly higher than the market rates established through the exchange's trading sessions. The resulting income was deemed unlawful, leading to the conclusion that the company had manipulated the pricing process to gain unjustified profits.

Under Uzbekistan's regulations regarding the sale of high-liquidity and monopoly products, companies are mandated to sell such items through the commodity exchange to promote transparency and fair market practices. The special commission investigating the case ruled that Shaffof Sement Sanoat's actions were in violation of these rules and took "appropriate measures" in response, although the specific penalties have not been detailed.

This is not the first time the Competition Committee has penalized companies in the cement industry. In August, the committee fined the Shangfeng - Bridge of Friendship cement plant, located in Andijan, 4.9 billion UZS for dumping practices and restricting competition.

The latest case involving Shaffof Sement Sanoat highlights ongoing efforts by the Uzbek authorities to crack down on unfair business practices in key industries, including construction materials, which play a crucial role in the country’s development projects.