The Principle of Competitive Neutrality: Theory and Practice


  • Beka Khitiri



Competitive Neutrality, State Owned Enterprises, State Business.


The principle of competitive neutrality is an important concept for states when they choose to act as business owners. Its contents can be summarized as follows: When state bodies own commercial legal entities, the latter should not possess any advantage in relation to those competitors that happen to be private businesses.

The bigger a role the state undertakes in regard to business, the more important observing the principle of competitive neutrality becomes. Therefore, a number of passive and active steps have been stipulated, which need to be utilized in practice to ensure that the said principle is observed. Hence, the state must make certain that such steps are indeed undertaken.

Considering the fact that, in Georgia, the governing bodies are actively involved in the field of commerce, it is important, that the needed actions are taken, and the principle of competitive neutrality is made reality. In light of this, the present essay discussed the very essence of the said principle, as well as those steps necessary for its implementation and compares them with the extant reality of Georgia.

Author Biography

Beka Khitiri

Doctoral student at Ivane Javakhishvili Tbilisi State University, Faculty of Law.


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How to Cite

Beka Khitiri. (2021). The Principle of Competitive Neutrality: Theory and Practice. Journal of Law, (2), 166–179(GEO),152.