Vakhidov & Partners

On December 27, 2024, the President of the Republic of Uzbekistan, Shavkat Mirziyoyev, signed the Law "On Telecommunications" No. LRU-1015 (the "Telecommunication Law"), which came into force on December 28, 2024. With the adoption of the new edition of the Telecommunication Law, the previous version, dated August 20, 1999, was repealed. General Provisions The new edition of the Telecommunication Law introduces new legal terms, such as communication line, tariff plan, telecommunication infrastructure (passive telecommunication infrastructure), telecommunication equipment, user devices, and others. The responsible government bodies for regulating the telecommunication sector have been identified The new edition of the Telecommunication Law, among others, lists the following authorities of the Cabinet of Ministers of the Republic of Uzbekistan ("Uzbekistan"): Implementing measures to expand the types of telecommunication services provided and modernize telecommunication infrastructure Taking measures to introduce modern technologies for the protection of telecommunications infrastructure, Determining the procedures and conditions for issuing licenses and permits, as well as the procedures for conducting competitive bidding (tenders) for the issuance of licenses for specific types of activities, Designating the regulatory authority in the telecommunication sector (the "Regulatory Authority"), Approving national programs in the telecommunications sector and ensuring their implementation. The new edition of the Telecommunication Law also designates the Ministry of Digital Technologies as the responsible government body in the telecommunication sector. In addition to other responsibilities, it performs the following functions: Implementing a unified state policy in the telecommunication sector, Developing state and other programs in the telecommunication sector, Drafting legal acts within its authority in the telecommunication sector, as well as regulatory documents related to the technical regulation of telecommunication activities, Organizing certification of telecommunication equipment, Coordinating the activities of operators and providers to ensure the information security of telecommunication networks, Collaborating with relevant authorities to monitor unauthorized access to networks and the circumvention of protection measures during traffic transmission, Promoting international cooperation in the telecommunication sector. Additionally, the Telecommunications Law establishes the authority responsible for state control in the telecommunication sector, specifically the Inspection for Telecommunications Informatization Control (the "State Control Authority"). Its responsibilities include ensuring: Compliance with laws, regulatory documents, and national standards in the telecommunications sector, Protection of user rights and the maintenance of service quality within its scope, Implementation of measures to develop telecommunication networks and services. The State Control Authority has the right to conduct investigations and audits of operators and providers (without interfering in their financial and economic activities) on matters within its scope, based on an order from the head of the State Control Authority to carry out the investigation and audit. The new edition of the Telecommunication Law also outlines the responsibilities of the new the Regulatory Authority — an independent legal entity in terms of finance, structure, and management, responsible for regulating the telecommunications sector. Among its duties are: Licensing and approval procedures for legal entities in the telecommunication sector, Accrediting legal entities that conduct expert evaluations of project documentation for the construction of telecommunication networks and facilities, Regulating tariffs for specific types of telecommunication services, as well as for interconnection services, Defining the list of universal services and their quality requirements, Developing and approving the procedure for using address space and determining the domain name system for the national segment of Internet, Implementing mandatory digital labelling of telecommunication equipment, Collaborating with relevant authorities to monitor unauthorized access to networks and circumvention of protection measures during traffic transmission, Monitoring the compliance of telecommunications services with the established quality requirements and standards. As of today, the Cabinet of Ministers of Uzbekistan has not yet designated the legal entity responsible for the functions of the Regulatory Authority. The new edition of the Telecommunication Law clarifies the procedures for providing telecommunications services The new edition of the Telecommunication Law establishes that no license is required to provide data transmission services in public access points, including those owned by small businesses in rural areas, as well as for local, long-distance, and international communication services. Notably, no license is required when data transmission networks are used exclusively for the internal needs of the companies. This applies, in particular, to manufacturing and technological processes, as well as signal transmission in course of providing the financial services, including banking, payment systems, payment organizations, and e-commerce platforms. At the same time, for certain types of telecommunication activities, licenses may be issued on a competitive (tender) basis. The rules for conducting such competitions will be established by the Cabinet of Ministers of Uzbekistan. Telecommunication network operators and providers are required to offer universal communication services to all users without exceptions or restrictions, ensuring that the quality of these services meets the established standards. The list of universal services and quality requirements will be determined by the Regulatory Authority. The responsibilities for ensuring telecommunication infrastructure during the design of buildings and structures have been defined Furthermore, it is important to note that the new edition of the Telecommunication Law stipulates that the Ministry of Construction and Housing and Communal Services of Uzbekistan, in collaboration with relevant national executive and local authorities, must ensure the following requirements during the development and approval of design tasks and project documentation for public, administrative, residential, and industrial buildings: Allocation of appropriate spaces and engineering infrastructure for the installation of telecommunication equipment in buildings, with provision of power supply, Availability of low-voltage cable shafts inside buildings for laying cables for telephony networks, data transmission, the Internet network, systems for collective reception of cable and terrestrial television, as well as "smart home" and security alarm systems, Allocation of appropriate land plots for the installation of communication lines and telecommunication equipment in public, administrative, residential, and industrial areas, Inclusion of mobile network base stations in regional and district centers, as well as central nodes of operators and providers of telecommunications, and broadcasting facilities in the list of objects exempt from power supply cuts. Mandatory requirements for ensuring telecommunication infrastructure in buildings and the rights of operators to access the telecommunication services have been established New requirements have been established, stipulating that the construction and commissioning of public, administrative, residential, and industrial buildings are not allowed without prior installation of the necessary telecommunication equipment. This includes: Laying cable ducts, Installing low-voltage cable shafts, Designating spaces for placing telecommunication equipment and other infrastructure elements that ensure access to telecommunication services. Operators and providers are authorized to construct communication cable lines throughout the territory of Uzbekistan. They may lay cables underground or suspend them on power line supports and high-voltage lines, in compliance with the requirements set forth by regulatory acts and technical standards. Measures for managing telecommunication during emergency situations have been established In the event of natural or man-made emergencies, or during the declaration of a state of emergency, when human casualties, health damage, environmental harm, significant material losses, or disruption of normal living conditions occur or may occur, the Regulatory Authority has the right to: Use with priority the telecommunication infrastructure, Coordinate centrally the efforts to restore and maintain the functioning of telecommunication networks, Restrict or suspend the operation of telecommunication systems if necessary to prevent further consequences or to mitigate already occurring consequences. The rights and responsibilities of operators, providers, and users in the telecommunications sector were expanded The new edition of the Telecommunication Law significantly expands the rights and responsibilities of operators, providers, and users. Specifically, the following new provisions have been added to the existing rights of operators and providers: The right of operators and providers to jointly use telecommunication infrastructure, communication channels, and radio frequency spectrum on a contractual basis, The provision of specific tariff plans and benefits to a designated group of users or in a specific limited region, The right to challenge, in accordance with the law, unlawful decisions, actions, or inactions of state authorities, unjustified interference in the telecommunication services market, hindrance to free market relations and competition, and to protect their interests. The new obligations for operators and providers include: The requirement to publish in the public domain methods for assessing the quality of services provided, The continuous development and expansion of their networks in accordance with legislation, licensing requirements and conditions, in coordination with the authorized state authority. The free provision of information about the services they offer, as well as the free acceptance of subscribers’ inquiries through a subscriber support center and ensuring their examination.

    Legislative Updates in E-Commerce Uzbekistan – January 2025   New Initiatives for the Advancement of E-Commerce in Uzbekistan On December 26, 2024, the Cabinet of Ministers of the Republic of Uzbekistan (“Uzbekistan”) adopted Resolution No. 885 "On Measures for the Further Development with the sphere E-Commerce in the Republic of Uzbekistan" (the "Regulation No. 885"). Below is an overview of the key regulatory innovations in e-commerce introduced by the Regulation No. 885. Conditions for Recognizing E-Commerce Operators in Uzbekistan have been established According to the Regulation No. 885, only legal entities that are residents of Uzbekistan can qualify as e-commerce operators (including electronic trading platforms, order aggregators, and digital streaming service providers). Meanwhile, legal entities and/or individual entrepreneurs who do not assume obligations under electronic contracts or transactions and are limited to providing information about goods (works, services) and digital products through their informational resources or platforms are not considered e-commerce operators. New Conditions and Requirements for E-Commerce Operators will be Introduced starting from July 1, 2025 According to the Regulation No. 885, starting from July 1, 2025, e-commerce operators must adhere to a notification-based regulatory framework, which includes the following conditions and requirements: Register as a legal entity within Uzbekistan, Comply with the applicable legislation of Uzbekistan in the fields of e-commerce, personal data protection, copyright, consumer rights, advertising, and other regulatory legal acts, Provide information related to their activities in the field of e-commerce to the authorized body upon request and free of charge, Comply with the retail trade regulations in force within Uzbekistan, Ensure the availability of an information system that guarantees the required level of functionality for providing services to e-commerce participants, Ensure the accuracy of the information contained in the notification of the commencement of activities, Ensure mandatory registration of information regarding new employment contracts, amendments to existing contracts, terminations, and details of active employment contracts in the interdepartmental software and hardware complex “Unified National Labor System,” if required for performing relevant employee-related actions. Comply with other requirements and conditions, considering the specific nature of the activities carried out under the notification procedure. In addition, according to the Regulation No. 885, starting from July 1, 2025, legal entities, individual entrepreneurs, and self-employed individuals engaged in e-commerce will be subject to the following requirements: Legal entities, individual entrepreneurs, and self-employed individuals engaged in the sale of goods, provision of services, or passenger transportation through electronic platforms are now required to use separate bank accounts for all financial transactions, The income generated by self-employed individuals in the field of e-commerce must be credited to a specially designated bank account. A bank card linked to this account shall be used to track incoming funds. Funds credited to this account will be included in the calculation of revenue for goods and services sold. Based on this data, self-employed individuals will be recognized as turnover taxpayers. Special Conditions for Legal Entities, Entrepreneurs, and Self-Employed Individuals As an exception, the Regulation No. 885 permits self-employed individuals engaged in the delivery of goods (works, services) or passenger transportation by light motor vehicles to: Pre-deposit funds into specially designated bank accounts of self-employed individuals, with subsequent debiting in favor of suppliers of goods (works, services) or e-commerce entities, Accept cash payments for delivered goods (works, services). In this case, it is permissible for self-employed individuals to retain cash in an amount equivalent to the amount transferred to the supplier of goods (services) from the separate bank account, without mandatory cash collection. When exporting goods via electronic trading platforms, legal entities, individual entrepreneurs, and self-employed individuals are allowed to send goods sold online to foreign buyers through courier and postal services, including without registering contracts in the Unified Electronic Information System for Foreign Trade Operations. Note: Additionally, electronic trading platforms are required to ensure the integration of their systems with the information resources of the State Tax Committee of Uzbekistan and the Customs Committee under the Ministry of Economy and Finance of Uzbekistan. Instructions on Improving E-Commerce Regulation and Implementing Control Mechanisms In accordance with the Regulation No. 885, the Statistics Agency of Uzbekistan, in collaboration with the National Agency for Perspective Projects (the “NAPP”) and with the support of foreign experts, has been tasked with introducing reporting forms for e-commerce entities by July 1, 2025, based on international best practices. In addition, within the context of fulfilling the requirements of the Regulation No. 885, the NAPP is required to undertake the following actions within three months: Develop and approve the procedure for conducting courier activities in the field of e-commerce, In collaboration with the Committee for Competition Development and Consumer Rights Protection develop mechanisms for online dispute resolution within the realm of electronic commerce in Uzbekistan and present the corresponding proposals to the Cabinet of Ministers. In collaboration with other authorized ministries and agencies, develop and submit draft regulatory legal acts to the Cabinet of Ministers. These proposals should introduce new concepts and terms into e-commerce legislation and provide for the implementation of the notification procedure for e-commerce operators in accordance with the conditions and requirements mentioned above. Additionally, the establishment of a register of e-commerce entities is planned.

On October 4, 2024, the Cabinet of Ministers of the Republic of Uzbekistan adopted Resolution No. 628,

The Cabinet of Ministers of the Republic of Uzbekistan adopted the Resolution on Approval of Normative Legal Acts on Antimonopoly Regulation in the Commodity and Financial Markets No. 256 on May 1, 2024 (the "Resolution 256").

Amendments and supplements introduced into the pharmaceutical regulatory legal acts