The Violation of Consumer Interests as a Qualifying Element of Unfair Competition, and Its Legal Framewor

Abstract

This article examines the role of consumer interests as a qualifying element  in the assessment of unfair competition under Georgian competition law.Although the Law of Georgia on Competition requires the simultaneousviolation of business ethics, competitor interests, and consumer interests forconduct to be classified as unfair competition, this cumulative approach does not align with European Union standards or the jurisprudence of the Court of Justice of the European Union (CJEU). Through a comparative legal analysis of Georgian legislation, EU directives – particularly the Unfair Commercial Practices Directive (2005/29/EC) and leading CJEU case law, the article argues that unfair competition may exist even in the absence of harm to consumer interests. The study highlights inconsistencies in the Georgian legal framework, including the absence of a legal definition of “consumer”, and the narrow interpretation of “end user,” both of which hinder the effective assessment of market conduct. Drawing on Georgian Competition and Consumer Agency (GCCA) decisions and relevant EU practice, the article demonstrates the significance of the “average consumer” standard, and the broader concept of the “transactional decision” in evaluating the impact of deceptive or misleading conduct. It concludes that consumer harm should operate as an independent criterion aimed at safeguarding free consumer choice, while unfair competition should be assessed according to its broader effect on market integrity. The article recommends legislative refinement to harmonize Georgian law with EU standards, and to ensure a coherent and effective system for combating unfair competition.