CHAPTER FOUR:

Regulation of Monopolies and Promotion of Competition in Economic Activities

ARTICLE 28- In realization of Article forty three (43) of the Constitution and in consideration of the criteria and provisions of Article (124) of this Law, government is authorized to take appropriate measures to privatize the provision of postal and telecommunication services while preserving sovereignty aspects of post and telecommunication, and making certain that no monopoly will be created in the non-governmental sector, and that the continuity of the services is secured.

ARTICLE 29- Government is authorized to take appropriate measures to enable real and legal entities in the cooperative and private sectors to participate in the purchasing green tea, processing it into dry tea, packing and distribution activities in the tea industry. The necessary by-law shall be prepared by the Ministry of Agriculture and will be approved by the Cabinet.

ARTICLE 30- On the basis of a by-law proposed by the Ministry of Road and Transportation and approved by the Cabinet, government is authorized to permit the real and legal entities of the local cooperative and private sectors to engage in transport of goods and passengers by railroad and the related activities including construction, development and maintenance of the railroad lines and facilities, operating the facilities, undertaking studies and research and training the manpower. In this connection, the provision of Article (128) of this Law shall be observed.

ARTICLE 31- Ministry of Industry is required to prepare and submit to the relevant authorities, within six month henceforth, the necessary draft bills and draft regulations pertaining to production, distribution, import and export of tobacco products, taking into consideration the interests of the government. Monopoly of the tobacco products will be annulled after ratification of the said bills and regulations.

ARTICLE 32- Government is authorized, irrespective of the Law Concerning Distribution of Sugar Products by the Country’s Factories enacted in 1974 and its amendment, to approve regulations concerning the standards for production, pricing, sales, distribution, export and import of sugar and hard sugar.

ARTICLE 33- Policy making and planning in the areas of discovery, exploitation as well as production of crude oil and refining the petroleum products and by-products shall remain as the state monopoly. Government, within the framework of this Law and a by-law to be prepared by the Ministry of Petroleum and to be approved by the Cabinet, entrust the undertaking of activities pertaining to refining, distribution and transportation of petroleum products and by-products to the domestic real persons and legal entities in a manner that it will not create any monopoly in the non-public sector while authority and sovereignty of the government as well as continuity of the services are guaranteed.

ARTICLE 34- Monopolistic provision of insurance services by Iran Insurance Company to state executive agencies subject to Article (30) of Iranian Central Insurance and Insurance Provision Law of 1971 shall be discontinued. Executive agencies are henceforth authorized to enter into insurance contract with the domestic insurance companies of their choice.

The executive criteria for implementation of this Article will be proposed by the Ministry of Economic Affairs and Finance and will be approved by the Cabinet.

ARTICLE 35- Government is required to abolish, within one year, all the monopolies established by executive directives and regulations or by granting concessions.

In assignment of contracts and undertaking of transaction by government and public sector, no discrimination shall be permitted amongst the state executive agencies , public enterprises, and the cooperative and private sectors.

Within one year from the ratification of the Third Plan, government is required to take legal actions to relinquish monopolies and monopolistic practices.