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Kazakh rail giant KTZ-Freight fined $3M for crushing market competition

A court just dealt a crushing blow to KTZ-Freight’s monopoly tactics. How one company’s preferential schemes reshaped—and restricted—Kazakhstan’s freight industry.

Graffiti is on the train. These are cables. Background there are houses with windows.
Graffiti is on the train. These are cables. Background there are houses with windows.

Kazakh rail giant KTZ-Freight fined $3M for crushing market competition

Astana’s 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.

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