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Unfair competition in business
What Cases Does the Law Prohibit?
Aggressive Conduct Toward Customers
Under the Competition Code, it is prohibited to restrict customers’ freedom of choice through threats, violence, or other unlawful means of influence in business activities. Such conduct may interfere with consumers’ ability to make free and informed decisions under normal market conditions, said Shahin Naghiyev, Head of Department at the State Agency for Antimonopoly Control and Consumer Market Supervision under the President of the Republic of Azerbaijan.
According to him, aggressive conduct toward customers is one of the forms of unfair competition. If an entrepreneur restricts a customer’s freedom of choice and decision-making by using threats, violence, or other unlawful means of influence, this is considered unfair competition.
For example, if a seller unlawfully forces a customer to purchase its product in order to prevent the customer from buying a product from another seller, this is considered aggressive conduct toward customers and constitutes unfair competition.
Discrediting a Competitor
The Agency official emphasized that the law prohibits the dissemination or organization of the dissemination of false or distorted information about a competitor’s business reputation, financial position, as well as scientific, technical, and production capabilities.
At the same time, making unfounded calls aimed at persuading market participants to refuse a competitor’s product may also give rise to legal liability. Circulating misleading information about the raw material origin, properties, quality, technologies used, and safety indicators of a competitor’s product constitutes a violation of the requirements of the Competition Code. Such practices harm a healthy competitive environment and may result in violations of consumer rights.
Imitation of a Competitor’s Business Activity
Except for the external appearance of a product that results solely from its technical characteristics, the unauthorized imitation of a competitor’s goods, their shape, external design, or packaging is contrary to the principles of free competition.
Sh. Naghiyev noted that reproducing a competitor’s product in violation of its intellectual property rights, as well as unlawfully using another person’s name, trade name, or trademark, is prohibited.
He also added that using a competitor’s geographical indication without a legal basis, appropriating its domain name, or applying an internet page design that is confusingly similar to the competitor’s page may be considered a form of unfair competition.
Misleading or Deceiving Customers
The use of information that may mislead or deceive customers regarding a product’s origin, method and technology of production, suitability for use, quality, weight, price, and other characteristics, as well as regarding the business entity and its entrepreneurial activities, is prohibited.
Furthermore, the use of unlawful advertising methods that affect a customer’s right to make a free choice during the sale of a product or negotiations related to it is also prohibited.
Sh. Naghiyev noted that comparing a competitor’s product in a manner that may mislead customers, as well as presenting such a comparison as advertising or media content, is also considered a violation of the law.
The use of inaccurate information about a product’s consumer properties and other important characteristics, including the use of distinctive signs, brands, or marks and advertising based on them, is also prohibited.
Providing false information about a product’s compliance with standards or technical regulations, or concealing that the product does not comply with its intended purpose or applicable requirements, also constitutes a violation of the Competition Code.
Unlawful Acquisition, Use, and Disclosure of Trade Secrets
The Head of Department noted that, unless otherwise provided by law or by an agreement between the parties, it is prohibited to unlawfully obtain, disclose, or use information relating to a competitor’s production, technological, managerial, and financial activities.
Using such information, which constitutes a trade secret, for personal interests or for the benefit of third parties harms the market position and interests of the competing business. Therefore, disclosure of legally protected trade secrets or their use to gain an unfair advantage in the business environment gives rise to legal liability under the Competition Code.
Other Actions Resulting in Unfair Competition
The Code also provides for a broad range of other actions that may constitute unfair competition. These include engaging in unfair competition through the use of unfair, inaccurate, or covert advertising; restricting the importation by competing businesses of products bearing the same or similar trademark registered outside the country, where such restriction is aimed at maintaining the market share or artificially increased prices of products bearing trademarks protected in Azerbaijan; entering into unlawful transactions or taking actions (or omissions) that cause or may cause the disruption or termination of a competitor’s business relationships; unlawfully influencing a competitor’s employees in order to induce them not to perform their official duties or otherwise cause harm to the competitor; unlawfully influencing the adoption or implementation of decisions related to a competitor’s business activities; and ordering or organizing payments for the purpose of causing other persons to commit actions (or omissions) prohibited by the Competition Code.
Unfair, Inaccurate, and Covert Advertising
Each of these forms of advertising — unfair, inaccurate, and covert advertising — may directly result in consumers being deceived or misled. Sh. Naghiyev emphasized that, under the Competition Code, the use of such forms of advertising constitutes unlawful conduct that may lead to unfair competition.
Unfair advertising includes comparisons between goods, disparagement of a competitor’s business reputation, making inaccurate claims, or concealing material information. Any material that creates a false impression in consumers and is disseminated in violation of legal requirements falls within this category.
Inaccurate advertising contains distorted information about the manufacturer, origin, characteristics, price, acquisition, and conditions of use of a product. This also includes fabricated information about product certificates and licenses, research results, as well as the terms of lotteries and other events.
Covert advertising refers to content that is promotional in nature but is presented without an indication such as “advertising,” “advertisement,” “sponsorship,” or “partnership.” Such content may be intended to exert a hidden influence on consumers’ perceptions and directly draw their attention to the subject of the advertisement.
Presenting advertising content in this manner on digital platforms may make it more difficult for consumers to distinguish advertising from ordinary content. In this regard, the status of persons involved in advertising activities on digital platforms and their advertising-related obligations are also of particular importance.
In this context, the inclusion of the concept of a “digital platform influencer” in the Law of the Republic of Azerbaijan “On Advertising” is one of the important recent developments. Under the law, a digital platform influencer is a natural or legal person who, in exchange for financial compensation, uses their influence to conduct advertising activities on digital platforms that serve as advertising media.
Measures Taken to Prevent Unfair Competition
To prevent cases of unfair competition, the State Agency for Antimonopoly Control and Consumer Market Supervision conducted 37 investigations and initiated 23 cases between January and July 2026.
According to Sh. Naghiyev, 14 business entities voluntarily eliminated the violations identified. Of the investigations conducted, 25 concerned the unlawful use of trademarks, while 12 concerned other cases of unfair competition.
Of the cases initiated, 18 concerned the unlawful use of trademarks, while 5 were related to other unfair competition violations.
What Cases Does the Law Prohibit?
Aggressive Conduct Toward Customers
Under the Competition Code, it is prohibited to restrict customers’ freedom of choice through threats, violence, or other unlawful means of influence in business activities. Such conduct may interfere with consumers’ ability to make free and informed decisions under normal market conditions, said Shahin Naghiyev, Head of Department at the State Agency for Antimonopoly Control and Consumer Market Supervision under the President of the Republic of Azerbaijan.
According to him, aggressive conduct toward customers is one of the forms of unfair competition. If an entrepreneur restricts a customer’s freedom of choice and decision-making by using threats, violence, or other unlawful means of influence, this is considered unfair competition.
For example, if a seller unlawfully forces a customer to purchase its product in order to prevent the customer from buying a product from another seller, this is considered aggressive conduct toward customers and constitutes unfair competition.
Discrediting a Competitor
The Agency official emphasized that the law prohibits the dissemination or organization of the dissemination of false or distorted information about a competitor’s business reputation, financial position, as well as scientific, technical, and production capabilities.
At the same time, making unfounded calls aimed at persuading market participants to refuse a competitor’s product may also give rise to legal liability. Circulating misleading information about the raw material origin, properties, quality, technologies used, and safety indicators of a competitor’s product constitutes a violation of the requirements of the Competition Code. Such practices harm a healthy competitive environment and may result in violations of consumer rights.
Imitation of a Competitor’s Business Activity
Except for the external appearance of a product that results solely from its technical characteristics, the unauthorized imitation of a competitor’s goods, their shape, external design, or packaging is contrary to the principles of free competition.
Sh. Naghiyev noted that reproducing a competitor’s product in violation of its intellectual property rights, as well as unlawfully using another person’s name, trade name, or trademark, is prohibited.
He also added that using a competitor’s geographical indication without a legal basis, appropriating its domain name, or applying an internet page design that is confusingly similar to the competitor’s page may be considered a form of unfair competition.
Misleading or Deceiving Customers
The use of information that may mislead or deceive customers regarding a product’s origin, method and technology of production, suitability for use, quality, weight, price, and other characteristics, as well as regarding the business entity and its entrepreneurial activities, is prohibited.
Furthermore, the use of unlawful advertising methods that affect a customer’s right to make a free choice during the sale of a product or negotiations related to it is also prohibited.
Sh. Naghiyev noted that comparing a competitor’s product in a manner that may mislead customers, as well as presenting such a comparison as advertising or media content, is also considered a violation of the law.
The use of inaccurate information about a product’s consumer properties and other important characteristics, including the use of distinctive signs, brands, or marks and advertising based on them, is also prohibited.
Providing false information about a product’s compliance with standards or technical regulations, or concealing that the product does not comply with its intended purpose or applicable requirements, also constitutes a violation of the Competition Code.
Unlawful Acquisition, Use, and Disclosure of Trade Secrets
The Head of Department noted that, unless otherwise provided by law or by an agreement between the parties, it is prohibited to unlawfully obtain, disclose, or use information relating to a competitor’s production, technological, managerial, and financial activities.
Using such information, which constitutes a trade secret, for personal interests or for the benefit of third parties harms the market position and interests of the competing business. Therefore, disclosure of legally protected trade secrets or their use to gain an unfair advantage in the business environment gives rise to legal liability under the Competition Code.
Other Actions Resulting in Unfair Competition
The Code also provides for a broad range of other actions that may constitute unfair competition. These include engaging in unfair competition through the use of unfair, inaccurate, or covert advertising; restricting the importation by competing businesses of products bearing the same or similar trademark registered outside the country, where such restriction is aimed at maintaining the market share or artificially increased prices of products bearing trademarks protected in Azerbaijan; entering into unlawful transactions or taking actions (or omissions) that cause or may cause the disruption or termination of a competitor’s business relationships; unlawfully influencing a competitor’s employees in order to induce them not to perform their official duties or otherwise cause harm to the competitor; unlawfully influencing the adoption or implementation of decisions related to a competitor’s business activities; and ordering or organizing payments for the purpose of causing other persons to commit actions (or omissions) prohibited by the Competition Code.
Unfair, Inaccurate, and Covert Advertising
Each of these forms of advertising — unfair, inaccurate, and covert advertising — may directly result in consumers being deceived or misled. Sh. Naghiyev emphasized that, under the Competition Code, the use of such forms of advertising constitutes unlawful conduct that may lead to unfair competition.
Unfair advertising includes comparisons between goods, disparagement of a competitor’s business reputation, making inaccurate claims, or concealing material information. Any material that creates a false impression in consumers and is disseminated in violation of legal requirements falls within this category.
Inaccurate advertising contains distorted information about the manufacturer, origin, characteristics, price, acquisition, and conditions of use of a product. This also includes fabricated information about product certificates and licenses, research results, as well as the terms of lotteries and other events.
Covert advertising refers to content that is promotional in nature but is presented without an indication such as “advertising,” “advertisement,” “sponsorship,” or “partnership.” Such content may be intended to exert a hidden influence on consumers’ perceptions and directly draw their attention to the subject of the advertisement.
Presenting advertising content in this manner on digital platforms may make it more difficult for consumers to distinguish advertising from ordinary content. In this regard, the status of persons involved in advertising activities on digital platforms and their advertising-related obligations are also of particular importance.
In this context, the inclusion of the concept of a “digital platform influencer” in the Law of the Republic of Azerbaijan “On Advertising” is one of the important recent developments. Under the law, a digital platform influencer is a natural or legal person who, in exchange for financial compensation, uses their influence to conduct advertising activities on digital platforms that serve as advertising media.
Measures Taken to Prevent Unfair Competition
To prevent cases of unfair competition, the State Agency for Antimonopoly Control and Consumer Market Supervision conducted 37 investigations and initiated 23 cases between January and July 2026.
According to Sh. Naghiyev, 14 business entities voluntarily eliminated the violations identified. Of the investigations conducted, 25 concerned the unlawful use of trademarks, while 12 concerned other cases of unfair competition.
Of the cases initiated, 18 concerned the unlawful use of trademarks, while 5 were related to other unfair competition violations.