Igor Artemiev discussed the results of FAS work in 2016 and the objectives for 2017

Head of the antimonopoly authority made a programme report at the extended session of FAS Collegium on 1 March 2017 in Moscow

“Last year was marked by adopting the “forth antimonopoly package” and changing sectors laws, which considerably reduced the number of cases opened by FAS”, emphasized Igor Artemiev.

Other practical results of the adopted amendments include an increased number of warnings and admonitions issued by FAS, a high percentage of their execution and prompt elimination of violations on the market *.

Head of FAS also pointed out at reducing the number of cases initiated against the authorities**, facilitated by introduction of the institution of warnings and admonitions: “Earlier the authorities were the main violators of the antimonopoly law. Finally, the trend has changed”.

Talking about the tariff regulation powers transferred to FAS, Igor Artemiev underlined: “There used to be no unified tariff-building principles. We have managed to correct it and eliminate the unfairness in estimating tariffs with the comparability method”. He added that in 2016 for the first time FAS was able to reduce many tariffs in the absolute value.  

Head of FAS stated that the antimonopoly authority is drafting a Law “On State Regulation of Prices (Tariffs)”.

As an important achievement and the first actual example of reducing prices by the antimonopoly body, Igor Artemiev mentioned reduced prices for medicinal drugs: as a result of a set of measures undertaken by FAS the ceiling ex-works manufacturer prices for drugs under the “Seven nosologies” programme, antiviral drugs for treatment HIV and hepatitis B and C patients, as well as antibacterial and anti-tuberculosis drugs were reduced to the minimum.

Head of Russian antimonopoly body pointed at a trend towards cartelization of the economy, especially, in public procurement. He emphasized that Article 178 of the Criminal Code of the Russian Federation, unfortunately, does not work: the law enforcement bodies do not open criminal cases upon violations of the antimonopoly law.

Igor Artemiev specifically analyzed unfair practices of foreign corporations and FAS cases against Google, Apple, Microsoft and container carriers.

Regarding changes to the law, Head of FAS discussed amendments to the City Planning Code, reforming the pricing system in construction. He emphasized: “We wanted the standards to be fair, estimated correctly and unified for the entire Russia”.

Changes in the contractual system were launched; procurement by state and municipal unitary enterprises are carried out under the No.44-FZ Federal Law, the importance of non-monetized criteria is decreased, construction works (except the most hazardous ones) are included in the auction list, and additional requirements to bidders on resources for tenders with limited participation in construction are excluded.

“Some problems, however, have not been sorted out: “paper” tenders, unilateral termination of contracts by the ordering parties, procurement from a single supplier on competitive markets, etc.  Amendments to Nos. 44-FZ and 223-FZ have not been passed yet”, pointed out Igor Artemiev.

He also mentioned opening an e-trading site to closed procurement procedures in public defence procurement.

Finally, Head of FAS outlined the plans of the Antimonopoly Service for 2017.  He stated that the main objective is implementing the National Competition Development Plan – a transition from competition protection to active measures towards its development.  

Summing up, Igor Artemiev said: “In the past ten years a lot seemed unreachable, however, we have achieved everything, and right now is the time when we have to work very intensively to try to change the world”.

* In 2016 FAS opened 4040 cases which is more than 55% reduction in the case load. For instance, 9092 cases were imitated in 2015.

At the same time, the number of warnings and admonitions raised up practically twofold: 90 admonitions (49 in 2015) and 5486 warnings (2362 in 2015). 76.8% of the warnings were executed.

** In 2016 FAS opened 1284 cases against the authorities in comparison with 3542 cases in 2015.