Information on realization of joint investigation in the countries of the CIS by the Headquarters on joint investigation of the antimonopoly law's violations in the countries of the CIS

The Interstate Council of Antimonopoly Policy (ICAP) is the basic platform for interaction of antimonopoly authorities in the countries of the CIS. The field of the issues discussed by the ICAP continuously extends and covers all spheres of competition authorities' activity of the countries of the CIS. Interaction in the countries of the CIS in the future can become the basis for the formation of the system of over-national regulations of competition relations in the transboundary markets in the countries of the CIS and can become the analogue of the European model of such relations' regulation.



Now the work which is carried out by the ICAP has reached a qualitatively new level. To increase the interaction between antimonopoly authorities of the countries of the CIS, the participants of one of the last ICAP' sessions decided to conduct joint investigations of anticompetitive practice of the companies acting at the interethnic markets of the CIS.



For this purpose the Headquarters dealing with joint investigations of the antimonopoly law's violations in the countries of the CIS was established (hereinafter referred as the Headquarters). 7 sessions of the Headquarters took place in 2006 - 2008.



The sessions of the Headquarters resulted in choosing the markets, successful functioning of which provides the creation of the infrastructure, which is the basis of forming the united economic area in the countries of the Commonwealth and influencing well-being of in the countries of the CIS.



The market of air transportations between the countries of the CIS was chosen as an example of such market at an initial stage. Some methodical approaches, a final list of tracks were approved; typical request of the information on the market of air transportations was specified and also the decision of preparation for carrying out investigation in the market of air transportations was accepted during sessions of the Headquarters.



The decision to begin joint investigations of air transportations' market was accepted at the XXV session of the ICAP which took place during the 6-th Conference of the International Competition Network in May, 2007. As the result, methodical approaches for selection routes of the airlines for carrying out of investigation were approved, typical inquiry of the information to the airlines was specified and some tracks were chosen. Besides, the decision to begin simultaneous inspections of airlines by competition authorities of in the countries of the CIS was accepted during the session and it started in June, 2007. To get information, the members of the ICAP simultaneously sent inquiries to the chosen airlines to get information.



The Russian party sent inquiries to get information to 36 airlines including foreign airlines and the airlines of in the countries of the CIS working in the Russian market.



As the result of the investigation the Report on the state of competition in the markets of air transportations in the countries of the CIS was prepared.



The international experience in the field of protection of competition in the market of air transportations, particularly in the European Union as an example, was examined; the most typical cases about violations of the antimonopoly law in the market of air transportations and airport services and Intergovernmental agreements on the air communication of in the countries of the CIS were considered in the Report. There are recommendations for the development of the competition at the given market, including offers to maintain non-discriminatory access to the services of natural monopolies and develop the competition in the potentially competitive segments of the markets, related to the market of air transportations. Practical realization of these suggestions will become one of the instruments of the development of the air transportations' market in the countries of the CIS.



The given Report was considered at the session of the Commission on Economic Issues at the Economic Council of the CIS (on July, 9th, 2008), Economic Council of the CIS (on September, 12th, 2008) and received a positive estimation.



The Report will be examined during the session of the Council of the States' Heads of the CIS in Kishinev on November, 14th, 2008.



Besides, the market of telecommunications as another priority market for carrying out joint investigations was selected.



Now the investigation of this market is being carried on. On September, 1st, 2008 the antimonopoly authorities of the countries of the CIS which have confirmed the participation in the investigation, simultaneously sent inquiries to the economic entities operating in the given markets. As the results of this investigation, proposals on the development of the competition in the markets of international telecommunication will be prepared.



Moreover, at the last session of the ICAP which took place in June, 2008 in Moldova, the decision to begin the investigation of the market of grain was accepted, considering mutual interest of the Parties in studying the state of the competition in the given market and its social importance.



Now methodical recommendations for the analysis of the grain market in the countries of the CIS prepared by the Russian Party are being refined. The Parties concerned will start investigation after its approval.



During the last session of ICAP which took place on October, 1-2nd, 2008 in Astana the question about improvement of cartels' investigations and carrying out the analysis of the market of combustive-lubricating materials in the countries of the CIS was included to the list of priority directions in the Headquarters' work.



Thus, the decision on formation the following subgroups in the Headquarters was accepted:



- for carrying out joint investigations in the markets of combustive-lubricating materials in the in the countries of the CIS, the Vice-President of Agency of the Republic of Kazakhstan on Protection of Competitions Z.M. Kozhahmetov was appointed as its Head;

- for carrying out joint investigation of cartels in the countries of the CIS, a representative of the Antimonopoly Committee of Ukraine in the position of the Vice-President will be appointed as its Head.



Now the structure of the given subgroups is being formed.