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Economy 22/08/2024 Uzjeldorpass to challenge Competition Committee’s decision

Uzjeldorpass to challenge Competition Committee’s decision

Tashkent, Uzbekistan (UzDaily.com) — Uzjeldorpass has announced its intention to contest the decision made by the Committee for Competition Development and Consumer Rights Protection of Uzbekistan regarding the imposition of a fine for excessive ticket fees.

Earlier, a Special Commission of the Committee fined Uzjeldorpass and “Shahar Atrofida Yulovchi Tashish” for illegal commission charges on passengers.

The Committee’s audit, conducted under the laws “On Competition” and “On Consumer Protection,” found that in 2023, the Fergana branch of Uzjeldorpass illegally collected about 660 million sums by adding commissions to the sale of 606,380 tickets. Similar violations were identified in the activities of the Fergana branch of “Shahar Atrofida Yulovchi Tashish,” which from 1 January to 24 July 2024, collected around 560 million sums in excess fees from 185,806 tickets. In total, about 1.3 billion sums were unjustly collected from 792,186 passengers.

The Commission required the companies to refund the illegally collected funds to the passengers, imposed financial penalties, and issued directives to rectify the violations and prevent future occurrences.

Uzjeldorpass stated it will appeal the decision to the Committee’s Appeals Council or in court. The company also noted that, according to their reports, the Fergana branch serviced only 220,700 passengers on intercity and suburban routes last year, which significantly differs from the figures reported by the Committee.

The company emphasized that the full ticket price for intercity trains is set based on actual costs approved by Uzbekistan’s financial authorities and Tashkent. Ticket prices at the branch have remained unchanged for eight years. For example, on the Kokand-Margilan-Andijan route, a ticket costs 12,000 sums, while the cost of transporting one passenger is 30,000 sums, which is significantly higher than the fare.

Additionally, it was found that the 3,000 sums intermediary fee was determined by the carrier itself, although the ticket tariff was approved by the financial management.

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