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ARTICLE · 09 DECEMBER 2019

Non-Compete Clauses: Admissibility And Application Risks In Kazakhstan

In practice it is common to see contracts that contain clauses establishing certain restrictions on the contracting parties.

KazakhstanAntitrust/Competition Law

In practice it is common to see contracts that contain clauses establishing certain restrictions on the contracting parties. Such restrictions may be in the form of obligations not to compete with the counterparty, known as "non-compete clauses".

Such clauses may be contained in the following types of contracts:

  1. Agreements on joint activities, joint ventures (for example, the parties refuse to compete with each other and/or with a joint venture in certain product markets in relation to specific goods (services) or within certain geographical boundaries, etc.);
  2. Agreements concluded in the framework of M&A transactions (for example, the seller is obliged to refrain from subsequent competition with the target and with the acquirer in the market in which the target operates);

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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