III Annual International Conference “Antimonopoly Policy: Science, Education, Practice” (Skolkovo Innovation Center, Moscow, Russia, December 5-6, 2017)

The 3^rd Annual International Conference “Antimonopoly Policy: Science, Practice, Education” (hereinafter - Conference) took place on December 5-6, 2017. Traditionally, the venue of the Conference is the Skolkovo Innovation Center (Moscow, Russian Federation).

In 2017, the main topic of the Conference was “Digital Economy and Competition Policy”. The digital economy is a modern reality that is rapidly developing and affecting all economic spheres ranging from the markets of explicitly digital goods and extending to classical markets. The current antimonopoly methods for assessing the conjunction of big data and competition law, as well as for considering the risks for antitrust enforcement in digital conditions require rethinking. Within the Plenary Session the leading antimonopoly regulators, as well as highly profiled experts in antitrust procedures were able to consider the pertinence of the approaches and economic analysis tools used in the era of the new economy.

The main focus of the Conference was further embraced within individual sessions devoted to such topical issues as detection and suppression of cartels, market definition in recognition of dominant position of economic entities and M&A consideration, tariff regulation, control over public procurement, as well as competition law in the system of modern education and science.

Press releases:

SERGEY PUZYREVSKY: THE MORE VIOALTIONS WE PREVENT, THE MORE EFFICIENT OUR ANTIMONOPOLY REGULATION WILL BE

ANATOLY GOLOMOLZIN DISCUSSED THE PROSPECTS OF TARIFF REGULATION IN THE DIGITAL ECONOMY

RUSSIA AND SERBIA WILL UNITE EFFORTS IN COMMUNICATIONS

INTERNATIONAL EXPERTS CAME TO SKOLKOVO TO DISCUSS DIGITAL ECONOMY

SERGEY PUZYREVSKY ABOUT EVOLUTION OF COMPETITION

DIGITAL ECONOMY: PRACTICE AND FUTUROLOGY

DIGITALIZATION OF THE ECONOMY REQUIRES NEW APPROACHES TO ANALYSING ECONOMIC CONCENTRATION TRANSACTIONS

EXPERTS DISCUSSED THE SIZE OF LOSSES CAUSED BY VIOLATIONS OF THE ANTIOMONOPOLY LAW

PLENARY SESSION

“Digital Economy and Competition Policy”

The realities of digital economy make international competition community to face challenges that require rapid adaptation. Effects of large hi-tech companies’ activity are still too hard to witness and to forecast. It is, however, obvious now that not only information, but also infringements of antimonopoly legislation are spreading at the speed of sound.

Recent developments on digital markets resulted in the emergence of several companies that earn revenues substantially by using business models based on collection and processing of big data. At first sight, advanced self-learning algorithms provide customers with solutions in accordance with their individual needs. Nevertheless, it is hard to assess the scope of end customers’ exposure to negative impact of digitalization of the economy.

Antimonopoly response only with regard to the human factor is already not enough to combat unfair practices of digital giants. Participants of the Plenary session – prominent representatives of expert and academic community, senior officials of foreign competition authorities – are invited to discuss key issues and features that must be taken into account with regard to the assessment of linkages between data, market power and competition law, as well as risks for competition enforcement associated with global nature of digital transformations.

Moderator: Sergey Puzyrevskiy, Deputy Head of the FAS Russia, Chairperson of the Competition Law Department of the Kutafin Moscow State Law University (MSAL)

Speakers:

Igor Drozdov, Chairman of the Board, “Skolkovo” Foundation

Igor Artemiev, Head, FAS Russia

Igor Shuvalov, First Deputy Prime Minister of Russia

Gadis Gadjiev, Judge of the Constitutional Court of the Russian Federation, Head of the Civil Law and Litigation Department, Academic Director of the Law Faculty of the St. Petersburg Branch of the National Research University “Higher School of Economics”, LL.D., Professor

Maxim Akimov, Deputy Chief, Government Staff

Hamid Ekbia, Professor, Indiana University

Alexey Ivanov, Director, HSE-Skolkovo Institute of Law and Development

Alexey Repik, President, All-Russia Business Association “Delovaya Rossiya” (“Business Russia”)

Cristina Caffarra, Vice President, Head of European Competition Practice of Charles River Associates

See presentations:

Antitrust Concerns in Digital Markets (C. Caffarra)

Incipient Monopoly (H. Ekbia)

(continuation)

Speakers:

Ioannis Lianos, Professor of Global Competition Law and Public Policy at University College of London

Elena Dybova, Vice-President of the Russian Federation Chamber of Commerce and Industry 

Patrick L. Krauskopf, Chairman of AGON Partners and head of the Center for Competition Law at the Zurich University

Denis Gavrilov, Deputy Chairperson, Competition Law Department of the Kutafin Moscow State Law University (MSAL), Councel at Egorov Puginsky Afanasiev & Partners Law Office, PhD in Law

Björn Lundqvist, Associate Professor, Stockholm University

Vladimir Lopatin, Academic Director of the Republican Scientific Research Institute of Intellectual Property (RSRIIP), Chairman of the Executive Board of the RSRIIP Intellectual Property Corporation, Academic Director of the Specialized Department “Intellectual Property Management” of the Plekhanov Russian University of Economics, LL.D., Professor

Elena Voinikanis, Leading Research Fellow, HSE-Skolkovo Institute of Law and Development, Associate Professor

See presentations:

Global Digital Value Chains, Distributive Justice and Competition Law (I. Lianos)

Competition in Data (B. Lundqvist)

An in-house view - multijurisdictional mergers (M. Eisenbarth)

Session  1

Competition law in the system of modern education and science

Development of economic relations in Russia based on principles of market economy and the need to protect competition between economic entities caused the formation of a new branch of the Russian law – competition law.

The provisions of the antimonopoly legislation and competition rules are essential to all spheres of economic activities ranging from regulation of activity of natural monopolies and dominant companies in the market, to regulation of public procurement and bidding for management of state resources.

The current special legal mechanisms for regulating relations on protection and development of competition, clearly indicate the specific subject and method inherent in competition law as an independent branch of law.

The existing and increasing with each passing day the demand for legal professionals in the area of antimonopoly policy can be satisfied only with the possibility of development of a science of competition law and training specialists in educational organizations.

Objectives of the Session: to exchange experiences and scientific approaches in the field of competition law, proposals on development of the science of competition law and the  relevant directions of development of professional education in this field.

Moderators:

Sergey Puzyrevskiy, Deputy Head of the FAS Russia;

Artem Molchanov, Head of the Legal Department of the FAS Russia;

Speakers:

Sergey Puzyrevskiy, Deputy Head of the FAS Russia;

Sergey Maximov,  Advisor to the Head of the FAS Russia;

Anna Varlamova, Professor, School of Law, Lomonosov Moscow State University;

Sergey Parashuk, head of master program “Competition Law”, School of Law, Lomonosov Moscow State University;

Irina Knyazeva, Professor of Management Department of Siberian Branch of RANEPA;

Viktor Vaipan, Deputy Dean of School of Law, Lomonosov Moscow State University

Vladimir Lopatin, Director of the Republican Scientific Research Institute of Intellectual Property

Lyudmila Borisova, Head of Saratov Regional Office of the FAS Russia;

Natalya Patokina, head of Division for antimonopoly control and anti-cartel of Nizhegorodskiy Regional Office of the FAS Russia

Session 2

New approaches to defining markets when establishing dominant position and considering transactions on economic concentration

Trends of markets globalization, digitalization and accelerating economic development now lead to the fact that the structure of national economies is changing radically. Companies, even those are not physically presented in the national markets, can have a significant impact on competition in related markets, thereby adversely affect consumers. This problem confronts the competition authorities the task of finding new approaches to definition of markets when considering transactions on economic concentration, as well as investigations of abuse of dominant position.

In addition, currently a draft law is being developed  in the Russian Federation on amendments to the Federal law "On Protection of Competition" aimed at the adaptation of measures of antimonopoly regulation to new economic conditions of  the unfolding fourth industrial revolution, including with regard to using by economic entities new business models in the global value chains, as well as the latest information technologies and intellectual property.

These aspects are proposed to participants of this Session for discussion.

Moderator:

Aleksey Ivanov, Director of HSE — Skolkovo Institute for Law and Development.

Speakers:

Anna Mirochinenko, Head of the Department for Control over Chemical Industry and Agro-industrial Complex of the FAS Russia;

Ioannis Kokkoris, Professor at King’s College London, UK (tbc);

Ioannis Lianos, Professor at University College London;

Andrey Shastitko, Professor at Lomonosov Moscow State University;

Pierre Regibeau, Professor at King’s College London;

Irina Gagarina, Head of the FAS in Kurgan, Head of Basic Department in Kurgan’s subsidiary of RANEPA.

Florence Thepot, Professor at the University of Glasgow;

Claudio Lombardi, Professor at the University of Almaty;

Daniel Russell, Head of US-Russia Business Council;

Irina Knyazeva, Professor of Management Department of Siberian Branch of RANEPA;

Evgeny Khokhlov, Partner of Antitrust Advisory;

Radmila Nikitina, Head of antimonopoly practice in Pepeliaev Group.

See presentations:

Market definition in the digital economy (F. Thepot)

Digital News for a Rave New World (C. Lombardi)

Session 3

Determination of the amount of damages caused by the violation of the antimonopoly legislation

Participants of the Session will discuss the methods of calculating damages, existed both in Russian and in foreign enforcement practice on challenges connected with violation of competition legislation. The summary of the mentioned methods is stipulated in the Guidelines of the Presidium of the FAS Russia No. 11 approved on October 11, 2017.

Amount of compensable damages may be even higher then the fine imposed on monopolists and cartel participants for violation of competition legislation. The mentioned Guidelines could assist the damaged Party to protect its rights, inter alia, through filling of claims that could become an additional mechanism of restoring consumer property rights.

Speakers:

Sergey Puzyrevskiy, Deputy Head of the FAS Russia;

Maria Egorova, Head of the Commission on improving antimonopoly legislation of Moscow Branch of the Russian Bar Association;

Artem Molchanov, Head of the Legal Department of the FAS Russia;

Vitaly Pruzhansky, Partner of RBB Economics;

Oleg Moskvitin, lawyer, partner of “Muranov, Chernyakov and partners”;

Denis Gavrilov, Deputy Head of the Competition law branch of Kutafin Moscow State Law University; advisor of the “Egorov, Afanasiev, Puginskiy and Partners” Law office.

Session 4

The transfer of state procurement and procurement of state-owned companies in electronic form as one of the main directions of development of the digital economy

Currently, in the Russian Federation the conditions for development of electronic commerce are created, including implementation of electronic procedures for public (municipal) and corporate procurement. Electronic procedures will ensure development of competition in procurement by simplifying application procedure, including economic entities, located at a considerable distance from customers and therefore increasing the number of procurement participants, including those of small businesses.

In this Session participants will discuss the main features of  electronic procedures for determination of suppliers (contractors), to improve anonymity for the submission and consideration of applications of participants of procurement and ensure fair competition and contribute to reducing corruption risks, risks of collusion between bidders,  increasing budgetary savings

Moderator:

Artem Lobov, Head of the Department for Control over Public Procurement of the FAS Russia.

Speakers:

Rachik Petrosyan, Deputy Head of the FAS Russia;

Caroline Socchi, Lecturer of the ZHAW School of Management and Law;
Evgeny Smirnov, Associate director and policy advisor of  the EBRD Procurement Policy Department;

Iliia Dimitrov, Executive Director of the Association of Electronic Trading Platforms;

Elena Agapova, Director, Center of Competition Policy and Public Contracts, RANEPA;

Larisa Korobeinikova, Vice-Rector for Economics and Contract Services of the Voronezh State University;

Eduard Lipatov,Head of Administrative and Criminal Law Chair of  Stolypin Volga Region Institute of Administration                                                 

Galina Prokopchuk,  PhD student of the Branch for Economic Analysis and Audit of Voronezh State University.

See presentations:

Public procurement in Switzerland and a future outlook (C. Socchi)

Session 5

Digital economy and cartels

Large-scale “tectonic” changes of markets dictate Competition Authorities to develop new rules of the game. The reason, inter alia, is that  IT-giants are seeking ways to strengthen positions on the market in the field of artificial intelligence’s development by creation of autonomous algorithms for the purpose of a long-term profit maximization. Using software to monitor activity of competitors in the market is not a prohibition in itself. Due to ability of algorithms in real-time to process and analyze large amounts of data, they can enhance market transparency and help companies to respond quickly to initiatives of rivals. But what prevents digital companies from using their technological potential to affect the market situation? Bots usage can create a market environment in which business rivals can easily coordinate economic activity or be involved in bid-rigging, without any risk being administratively prosecuted for violation of the antimonopoly legislation.

Participants of the session are invited to assess how effectively the existing antitrust laws are able to address such scenarios. Moreover, the session will be devoted to the use of digital technologies in indication and proving of cartels. Competition experts will share their experience in development and application of technologies with capacity to remotely indicate violations of antimonopoly legislation.

Moderator:

Alexey Ivanov, Director, HSE — Skolkovo Institute for Law and Development

Speakers:

Salil K. Mehra, Professor, Temple University - James E. Beasley School of Law

Andrey Tenishev, Head of the Anti-cartel Department, FAS Russia

Ioannis Kokkoris, Professor, Queen Mary University of London

Denis Gavrilov, Deputy Chairperson, Competition Law Department of the Kutafin Moscow State Law University (MSAL), Councel at Egorov Puginsky Afanasiev & Partners Law Office, PhD in Law

Natalya Mosunova, PhD Researcher, University of East Anglia

Francisco Costa-Cabral, Assistant Professor, Tilburg University

Zakataev Andrey, Partner, Antimonopoly Law Office

Nicolo Zingales, Lecturer, University of Sussex

See presentations:

Algorithmic pricing and tacit collusion (N. Zingales)

Competition Enforcement Challenges in Sharing Markets (I. Kokkoris)

Robo-Selling, Big Data and Antitrust’s Error-Cost Framework (S. Mehra)

Session 6

New approaches to tariff regulation

Session is dedicated to the issues of legislative support of tariff regulation, including amendments to the Law on Protection of Competition, abolition of the Law on Natural Monopolies and adoption of the Law on Basics of Tariff Regulation. Participants of the Session will discuss the most up-to-date pro-competitive principles of tariff regulation based on market analysis and long-term tariff regulation. Special attention will be paid to issues of informational support of tariff regulations, including interaction between the Federal and Regional Executive Authorities, standards of information disclosure, formation and processing of large databases. The best practices of cooperation in the sphere of tariff regulation in the frameworks of the CIS-countries, Eurasian Economic Unit, Network of Economic Regulators, Energy Regulators Regional Association (ERRA) will be also discussed at this Session.

Moderator:

Anatoly Golomolzin, Deputy Head of the FAS Russia;

Speakers:

Tomas Toth, Head of Department; for Statistics and Analysis, Hungarian Energy and Public Utility Regulatory Authority;

Maxim Bystrov, Chairman of the Board of Association "NP Market Council", Chairman of the Board of JSC “TSA”;

Jelena Ivanovic, Director of Legal Sector of Regulatory Agency for Electronic Communications and Postal Services of the Republic of Serbia;

Kristian Toth, Head of Department for International Relations, Hungarian Energy and Public Utility Regulatory Authority;

Victor Grishin,Rector of Plekhanov Russian University of Economics;

Anna Mazur, Adviser of Estonian Competition Authority;

Elena Dovlatova, Executive Director of Russian Association of water supply and sanitation;

Garegin Baghramyan, Head of Tariff Policy Department, Public Services Regulatory Commission of Armenia;

Expanded meeting of Scientific-methodical Council of educational organizations and departments competition law and antitrust regulation of the FAS Russia

The activity of the Board is aimed at supporting to promote competition law as one of the basic academic disciplines, organizing academic theoretical and practical researches and development of science of competition law and regulation; providing methodological support for branches of competition law and antimonopoly regulation.

Up to the moment 51 educational organizations and branches of competition law and antimonopoly regulation have been created.

Participants of the meeting will discuss the following issues: competition law as a branch of law and as academic discipline; main categories of competition law; approaches to creation of branches on competition law; capacity-building program “Public regulation of prices (tariffs)”; unit standard “Specialist on Competition Law”.