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The Agency for Protection and Development of Competition has achieved the cancellation of anti-competitive terms in INVIVO franchise agreements.

Submitted by Вера Александрова on

(13 January 2026 | Source: Agency for the Protection and Development of Competition of the Republic of Kazakhstan)

The Agency for the Protection and Development of Competition (APDC RK) has succeeded in eliminating contractual terms that restricted competition in the laboratory services market. This concerns a ban on cooperation with competitors after the termination of a franchise, which could last up to two years and affected dozens of cities.

WHAT THE COMPLAINTS ARE ABOUT

The APDC Department for Almaty identified signs of abuse of a dominant position in the actions of INVIVO Business LLP, the licensee of the INVIVO brand.

The company entered into comprehensive business licence (franchise) agreements, which included a prohibition for partners from cooperating with competitors for a period of 24 months after the termination of the agreement.

HOW THIS AFFECTED THE MARKET

According to the antitrust authority, such conditions created obstacles for the business activities of a wide range of participants in the laboratory services market. The restrictions affected 16 cities across the country and narrowed the opportunities for work and development of entities that had previously cooperated with the franchise network.

OTHER SIGNALS FROM THE REGULATOR

The situation with INVIVO's contracts formed part of the antitrust authority's broader agenda. Earlier, the agency reported problems with competition and transparency in the pharmaceutical sector, where, due to opaque pricing mechanisms, certain domestic medicines were sold at 2–3 times the price of foreign equivalents.

The APDC pointed out that the overpricing was linked to a lack of analysis of actual costs and a reliance on calculations based on the suppliers' own submissions. The agency stated it was moving towards calculating prices based on data from reference countries and official sources. 

The regulator paid particular attention to the procurement practices of SK-Pharmacy LLP, where a significant share of procurement through intermediaries increased the risk of price hikes and reduced transparency.

THE COMPANY'S RESPONSE AND OUTCOME

After receiving the notice from the antitrust authority, INVIVO Business LLP voluntarily removed from its contracts the clauses restricting competition. As a result of the measures taken, the rights of 143 entities in the laboratory services market were protected. Other consequences and additional measures are not specified in the materials.