The deputy minister also stressed that local producers find it difficult to enter online markets, which is due to the contractual terms that online markets impose on them.According to Vakhtang Tsintsadze, prices for comparable products in Georgia are 20% to 180% higher than in European online markets."The mentioned challenge is not new and is not limited to Georgia. Similar challenges have existed in European countries, including Georgia, and various countries have responded to it with various adequate mechanisms. Our goal is to study this issue in depth in order to respond to the challenge with appropriate adequate mechanisms," the Deputy Minister of Economy noted.On December 24, Irakli Kobakhidze spoke about the high markup on products in Georgia and the financial burden imposed on suppliers.According to Kobakhidze, the study shows that the financial profit of chain markets in Georgia is much higher than in Europe, in particular, the net profit margin of specific retail chains in Georgia is 7, 8 and even 14 percent, when the average net profit margin in Europe is 2%.As of December 24, inflation in Georgia is 4.8%.A 2023 study by the ISET research organization discusses that - government price controls can have several negative consequences. Among them: It often leads to a shortage of goods or services, - because the price is artificially lowered below the market equilibrium point, which, in turn, creates excess demand. In addition, imposing a maximum price limit can lead to a decrease in the quality of goods or services, as producers may begin to look for ways to reduce costs. Sellers can avoid the law by reducing quality instead of raising prices. Consumers may also have to bear the costs associated with searching for goods and services, such as long lines or the time spent searching for a product that is in high demand but in low supply. Typically, when paying a higher price than the established one is illegal, buyers find a way to pay more in the form of bribes, which ultimately increases the level of corruption.

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The Prime Minister urged law enforcement agencies to conduct a thorough investigation into the matter.“I call on law enforcement agencies to examine the issue in detail and determine whether there are any indications of criminal activity by specific entities.Additionally, I would like to request that the Georgian Parliament establish a parliamentary commission, empowered to utilise relevant parliamentary tools to assess and address this issue,” Irakli Kobakhidze added.The Prime Minister also mentioned in his video address that the disparity between Georgian and European prices is quite significant.“When comparing identical international brand products in Georgia and France, sunflower oil is 34% more expensive in Georgia, pasta 97% more, rice 180% more, butter 30% more, cheese 42% more, and chocolate 47% more,” the Prime Minister stated.According to the Head of Government, the price difference is determined by the high mark-ups of distribution companies and supermarkets, which average 86% from the Georgian border to the checkout.“The public frequently expresses concern that food prices in Georgian supermarkets are significantly higher than those in Europe. To investigate this issue, we selected several basic food items, compared their prices in Georgia with those in specific European countries, and analysed the markup structures, including the trading practices of chain supermarkets. The disparity between Georgian and European prices is indeed considerable; for example, when comparing identical international brand products between Georgia and France, sunflower oil is 34% more expensive in Georgia, pasta 97% more, rice 180% more, butter 30% more, cheese 42% more, and chocolate 47% more. This price gap is largely driven by high mark-ups applied by distributors and supermarkets, which average around 86% from the Georgian border to the point of sale,” Kobakhidze stated.Georgia’s Prime Minister also observed that the net profit margins for certain retail chains in Georgia are 7%, 8%, and even 14%, whereas the average net profit margin across Europe is around 2%. According to the Prime Minister, the mark-ups on products and the financial burdens placed on suppliers are so significant that it is often more profitable for Georgian producers to export their goods abroad rather than sell them in Georgian supermarkets.“Research indicates that the financial profits of chain supermarkets in Georgia are significantly higher than those of their European counterparts. Specifically, net profit margins for certain retail chains in Georgia are 7%, 8%, and even 14%, whereas the average net profit margin across Europe is around 2%. It is also important to note that operating costs for supermarkets in Europe, such as premises rental, labour expenses, utility bills, and so forth, are substantially higher. Additionally, the net profit margins of distribution companies in Georgia are quite high, typically ranging from 6% to 13.5%.The mark-ups on products and the financial burdens placed on suppliers are so significant that it is often more profitable for Georgian producers to export their goods abroad rather than sell them in Georgian supermarkets. This is why one frequently encounters foreign products in Georgian supermarkets that were actually exported by Georgian companies. This presents a serious problem, as the state’s interest should, on the contrary, be to support Georgian manufacturing and minimise imports as much as possible,” the Prime Minister remarked.The Head of Government further stated that, amid high profit margins, companies are rapidly expanding their retail networks. Over the past five years, the number of chain supermarkets in the country has doubled. As a result, Georgia now has 113 supermarkets per 100,000 people, compared to 45 in Germany and 62 in Austria. The Prime Minister sees it as reasonable to conclude that the costs associated with network expansion are directly reflected in product prices. According to Kobakhidze, preliminary analyses indicate several key factors that may be contributing to high mark-ups and, consequently, elevated prices.“For example, there is the so-called network cashback, entrance fees imposed for shelf space, delayed payments to distributors or manufacturers, the proliferation of shops and the reflection of new shop opening costs in prices, and so forth. Most importantly, existing practices raise suspicions that market players may be acting in concert, following cartel principles, which, naturally, requires further analysis,” the Prime Minister noted.Two-time former Prime Minister Irakli Gharibashvili, accused of corruption, stated in February 2023 that prices and margins for importers and specific rules for retail would be established to regulate food prices.The rules for the retail sector in Georgia are not approved in Europe, so the Ministry of Economy was to prepare a draft law on fair trade to regulate retail trade rules on the instructions of Gharibashvili."The picture that emerged is this - the markup of importers has increased by 100% in some cases, this is unacceptable and the issue must be regulated," Gharibashvili said.At the request of Gharibashvili, the National Competition Agency studied the market of 7 main products (rice, buckwheat, pasta, sugar, salt, oil, butter), as a result of which it concluded that price increases at the import level were indeed high, although no cartel agreement or violation of the law was officially confirmed. The agency only addressed the business with recommendations.

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Zakaradze noted that key milestones were achieved at both airports during the year. Passenger traffic at Tbilisi International Airport exceeded 5 million for the first time in history, while Batumi International Airport surpassed one million passengers in October. She highlighted peak daily records, including 21,959 passengers and 97 flights at Tbilisi Airport on August 12, and 8,446 passengers across 35 flights at Batumi Airport on August 24.The growth rates further underscore the strong recovery and expansion of Georgia’s aviation sector. Passenger traffic at Tbilisi Airport increased by 13% year-on-year and by 45% compared to the pre-pandemic period, while Batumi Airport recorded 30% annual growth and a 96% increase compared to 2019, described as an unprecedented result.According to 2025 data, 61 airlines currently operate flights to 67 destinations from Tbilisi and Batumi airports. Over the past year, eight new airlines entered the Georgian market, including Air Serbia, British Airways, EasyJet, Edelweiss, Transavia France, Vision Air, Fly Khiva, and Air Samarkand, further expanding connectivity and supporting continued passenger growth.

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In the case under examination, the consumer was informed of a specific price at the time the product was weighed at the retail store. However, at the point of payment, the consumer was charged a higher price on the grounds that the discount period had expired.According to the Agency, the modification of the price by the trader at the point of payment constitutes a misleading commercial practice, as it violates the fundamental principles of consumer law, including informed consent, reasonable expectations, and fairness.Furthermore, in cases involving the purchase of a large number of products, consumers are not reasonably able to independently verify the validity period of discounts applicable to each individual item. This circumstance significantly increases the risk that consumers may fail to notice the expiration of a discount and, as a result, remain unaware that the price of the goods placed in their shopping basket no longer corresponds to the price indicated on the shelf.By its decision, the Agency ordered the trader to restore the infringed consumer rights within one month and to fully align its commercial policy with the requirements of the applicable legislation.

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Following the receipt of consumer submissions and the Agency’s detailed assessment and examination of the matters, the GCCA concluded that Global Transporter LLC and Space Cargo LLC had committed unfair commercial practices.In the case of Global Transporter LLC, the consumer reported that a parcel delivered to the trader’s foreign address was not reflected in the consumer’s personal account. Furthermore, following the consumer’s application to the GCCA, the trader contrary to the terms of the existing agreement restricted the consumer’s access to the service. The Agency assessed this conduct as the use of an unfair standard contract term. The examination further established that the company failed to provide consumers with information on the essential characteristics of the service, which constitutes a misleading commercial practice by omission.Regarding Space Cargo LLC, consumers submitted applications alleging defective service provision. In one instance, upon the parcel’s arrival in Georgia, the transportation fee was calculated using a method that differed from the one originally agreed upon. In another instance, the trader refused to compensate for the damage resulting from the loss of a parcel. The Agency concluded that the company had engaged in misleading commercial practices by omission. Moreover, the trader failed to properly fulfil its contractual obligation to deliver a parcel received abroad to Georgia, as the consumer never received the item accepted at the foreign address.Pursuant to its decisions, the Agency required both traders to restore the violated consumer rights and ensure full compliance of their commercial practices with the applicable legislative framework.

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The investigation was launched pursuant to a request from the Ministry of Regional Development and Infrastructure of Georgia. The request indicated that observations made by the administrations of State Representatives across various tenders had revealed circumstances that appeared to be inconsistent with or potentially in breach of the Law of Georgia on Competition, thereby requiring appropriate action.Specifically, the tender monitoring process identified circumstances suggesting possible concerted practices by the following companies in relation to construction supervision tenders announced between 2022 and 2025 in the regions of Racha, Samegrelo, Guria, Mtskheta-Mtianeti, Shida Kartli, Kvemo Kartli, Imereti, Samtskhe-Javakheti, and Kakheti:LLC GeoExpert, LLC Zaisi & Company, LLC Engineering Monitoring Group, LLC Inspect-AS, LLC Optimal Group+, LLC Expert House, LLC SkyScaper, LLC TIAG Auditescort, LLC Chrizoliti+, LLC Mshen-Expert+, and LLC Megamsheni.The Agency’s preliminary analysis identified multiple factors giving rise to a reasonable suspicion that coordinated conduct may have occurred among the undertakings concerned. Consequently, GCCA formally initiated an investigation.During the current year, the Agency has concluded three investigations. In two instances, infringements were confirmed, involving abuse of a dominant position, specifically through the imposition of unfairly high prices. In one case, no violation was established. Currently, two investigations remain ongoing, one concerning alleged abuse of a dominant position and the other relating to potential concerted practices.

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The increase was observed in the production value of the business sector as well. In the III quarter of 2025, production value equaled 25.4 billion GEL, which is 9.7 percent more year-on-year.In the III quarter of 2025, large businesses generated 67.5 percent of total turnover, while medium-sized businesses generated 14.5%, and 18% was generated by small businesses. A distribution was different in the case of total production value: 46.1% was on large businesses, 23.2% - on medium, and 30.8% - on small businesses.In the III quarter of 2025, total purchases of goods and services carried out by enterprises equaled 33.5 billion GEL (year-on-year 8.8 percent more), while the purchase of goods and services for resale amounted to 19.2 billion GEL (year-on-year 8.9 percent more).In the III quarter of 2025, the average number of persons employed in business sector equaled 814.7 thousand, which is year-on-year 3.3% more. Out of the total number of persons employed, 43% were female and 57% were male.Large businesses employed 42.1 percent of total number of persons, while 19.9% were employed by medium, and 38.0 percent - by small businesses. The total number of employees amounted to 758.0 thousand (year-on-year 2.0 percent more) and the total personnel costs of enterprises equaled 5 624.9 million GEL (year-on-year 13.1 percent more).In the III quarter of 2025, average monthly remuneration of employed persons equaled 2 420.9 GEL (230.8 GEL increase year-on-year), while remuneration specifically for employed women was 1,846.9 GEL (144.5 GEL increase year-on-year). Average monthly remuneration of employed persons by size of enterprises is as follows:• Large business — 2 498.3 GEL• Medium-sized business — 2 801.6 GEL• Small business — 2 072.5 GELIn the III quarter of 2025, the arts, entertainment and recreation had the highest share (34.5 percent) in the total turnover in business sector, followed by trade sector (including repair of motor vehicles and motorcycles) with 33.5% share, manufacturing – with 7.8%, construction – with 6.3%, transportation and storage – with 4.6%, information and communication – with 3.4 percent, and other sectors – with 10% share. In the III quarter of 2025, trade (18.6%), manufacturing (18.3%), construction (18.2%), transportation and storage (9.4%) and information and communication (8.4%) held the top five places in business sector by production value. The rest of the sectors had 27.1% share combined. In the III quarter of 2025, trade (wholesale and retail trade; repair of motor vehicles and motorcycles), manufacturing, and human health and social work activities led business sector by number of employees with 29.1%, 11.3%, and 9.2% shares, respectively. Enterprises engaged in construction activities (8.5%), transportation and storage (8.2%), information and communication (6.4%), and accommodation and food service activities (5.7%) also had a significant share though.

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The new regulation, among other things, provides for the approval of the cultivation of entrepreneurial vineyards starting next year, which will be issued by the LEPL National Wine Agency.“It is commendable that vineyards have been actively built in recent years, although this should not be spontaneous. We should pay more attention to: quality, exposure, soil, varieties. If an entrepreneur takes all this into account, he will not encounter any obstacles in obtaining permission for cultivation. In general, it should be noted that wine consumption has decreased on a global scale; the experience of recent years of the vintage shows that the state has to intervene in the purchase of grapes and in order not to hinder the development of the sector, we must introduce regulations for the cultivation of vineyards,” said Levan Mekhuzla, Chairman of the National Wine Agency.According to the Chairman of the Agency, a permit for the cultivation of vineyards will have to be obtained by those who plan commercial activities and does not apply to those who intend to cultivate vineyards for personal use.According to Mekhuzla, in recent years, interest in the field of viticulture and winemaking has increased, which is reflected in the intensive cultivation of new vineyards. It is worth noting that in a number of cases, vineyards are planted with varieties not permitted for the relevant viticulture zones and subzones or with seedlings grown in uncertified nurseries, which subsequently leads to problems with both grape production/sale and wine production.The draft law will be sent to the Parliament of Georgia for adoption. The draft law was prepared by the Ministry of Environmental Protection and Agriculture of Georgia.

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Over the first ten months of 2025, the Agency received 1123 applications and handled 3560 calls, representing a 57% increase in applications compared to the same period last year.During the reporting period, the Georgian Competition and Consumer Agency (GCCA) identified 145 violations of consumer group rights in 222 cases. Due to non-compliance with obligations imposed by the GCCA, 68 traders were fined in 111 cases, with total penalties amounting to 117 283GEL. For consumer protection, 132 commitment agreements were signed in 147 cases, where traders committed to modifying their internal business policies and restoring the rights of affected consumers who suffered due to unfair business practices.Of the applications received, 65% were related to online trading, while 35% concerned in-person purchases. According to regions, Tbilisi continues to lead with 79%, followed by Adjara with 5%, Imereti 5%, Kakheti 2%, Kvemo Kartli 2% and other regions.Based on ten-month data, the demand for a refund is 370, the repair or replacement of defective items is 364, 198 for restoring the right to a defective service, ensuring delivery of goods within the stipulated period 74, 36 related to the prohibition of misleading practices, and the rest is 81.According to the statistics, by sector, 73% is the wholesale and retail sector, transport and warehousing 10%, the arts, entertainment, and recreation sector accounted for 5%, and other activities represented 12% of the total.

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By the end of the year, the company had 23 of its own and 27 leased gas stations, as well as 10 franchised gas stations located in all regions of Georgia.The company’s main supplier is LUKOIL NEFTOHIM BURGAS AD, a company within the LUKOIL group.In 2024, it had a transaction of GEL 60.3 million for the purchase of goods and services with the ultimate parent company, and GEL 547.8 million with subsidiaries of the same level.From the sale of oil and oil products, Lukoil received revenue of GEL 762.5 million, which is an increase of 57.8% (y.y). Among them, it accumulated GEL 566.8 million in revenue from wholesale sales, and GEL195.7 million from retail sales.

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