The article deals with the analysis of the Ukraine–European Union AssociationAgreement especially chapter on competition. It was proved that competition policy is a coreelement of the free trade area and its effective functioning especially since it entering into forcesince the 1st of January 2016. Recent changes in the legislation of Ukraine were studied, whichwere aimed at the implementation of the norms of Ukraine Association Agreement. It is provedthat the competition law of Ukraine must comply with the principles of transparency, nondiscrimination,procedural fairness and the right of defense.