FAS warned Rostuorism not to restrict competition on the market of tourist services

On 3 August 2016, the Federal Antimonopoly Service (FAS Russia) warned (1) the Federal Agency for Tourism (Rostourism). The competition authority believed a regulatory act issued by Rostourism sets non-statutory requirements to tourist organization, thus, creating conditions to restrict competition between tourist organizations.

The Rostourism Order of “On compiling a list of tourist organizations involved in implementing the Agreement between the Government of the Russian Federation and the Government of the People’s Republic of China on visa-free group tours of 29 February 2000” extended a list of requirements to the organizations organizing tours to China.

In particular, the Order requires that a company starts operations only after China confirms the readiness to work with it. At the same time, the body of the Agreement between Russia and China as well as the Appendices to the Agreement (2) do not contain such a condition. Thus, by issuing the Order, Rostourism set non-statutory requirements to economic entities, which is a sign of violating Clause 2 Part 1 Article 15 of the Federal Law “On Protection of Competition”.

"To execute the warning, Rostourism must exclude a condition from the Orders preventing operation of economic entities under the fame of implementing the Agreement between Russia and China. Otherwise FAS will open a case against Rostourism upon elements of violating the antimonopoly law”, commented the Head of FAS Department for Control over Social Sphere and Trade, Timophei Nizhegorodtsev.

Reference:

1. Article 39 of No. 135-FZ Federal Law “On Protection of Competition” of 26.07.2006.

2. The Agreement between the Government of the Russian Federation and the Government of the People’s Republic of China on visa-free group tours of 29 February 2000 and the Procedures for determining tourist organizations that can operate under the frame of implementing the Agreement between the Government of the Russian Federation and the Government of the People’s Republic of China on visa-free group tours of 29 February 2000.