Kazakh rail giant KTZ-Freight fined $3M for crushing market competition
Astanaâs Specialized Interdistrict Court has upheld a significant fine against Kazakh National Company KTZ-Freight Transport. The company was penalized for abusing its dominant market position, creating barriers for private freight forwarding firms.
The investigation into KTZ-Freight Transport's practices was initiated following complaints from transport and logistics companies, as well as freight forwarders associations. The Agency for the Protection and Development of Competition found that KTZ-Freight Transport had granted preferential treatment to its affiliated entities, stifling fair competition.
The court imposed a fine of 1.42 billion tenge on the company. This decision was recently confirmed by an Astana city court, and the fine has since been transferred to the state budget.
KTZ-Freight Transport's preferential treatment of its affiliates has been deemed a violation of competition laws. The company has been held accountable with a substantial fine, aiming to promote fair market practices and encourage healthy competition within the freight transport industry.