Artem Molchanov: FAS implements a risk-based approach

Developing the mechanisms of preventative control is a new vector of antimonopoly regulation

On 25 - 27 April 2017, FAS Centre for Education and Methodics (Kazan) is hosting an international workshop on antimonopoly regulation and combating cartels in retail. Opening the event, Head of FAS Legal Department Artem Molchanov reported that all FAS legislative initiatives are designed to reduce administrative burden upon business community.

“It is safe to say that Russian competition authority has become a body of preventative control”, emphasized FAS representative. “It is confirmed by the number of cases on violating the antimonopoly law. According to the statistics, their number decreased twofold”.

Artem Molchanov showed clear trends of initiated cases for the colleagues from the competition authorities of other countries: in 2015 FAS opened and investigated 9092 cases and in 2016 – 4040. FAS was able to achieve these figures through legislative expansion of the institution of warning. Artem Molchanov stated that over 76% of the warnings issued by the antimonopoly body were executed.

“Such practice improves FAS performance and business climate”, said FAS representative.

Artem Molchanov also informed the workshop participants that the Antimonopoly Service broke down economic entities subject to inspection into the following risk categories. The top level (the highest risk of violating the antimonopoly law) – natural monopolies with the income exceeding 10 billion RUB, the next group – large economic entities with the income over 10 billion RUB, and at the lowest level – other economic entities, that are not subject to scheduled inspections.

Then he presented the mechanism as to how FAS Presidium works.

“Since regional FAS bodies operate in each subject of the Russian Federation, we have reached a conclusion to form unified enforcement of the Federal Law “On Protection of Competition”, reported Artem Molchanov. “To solve the issue, FAS established a collegial body that has the powers to review decisions and determinations of FAS regional Offices. In the past year, FAS Presidium considered several dozens acts issued by regional antimonopoly Offices. Through the efforts of this collegial body, FAS Central office has already developed common approaches to antimonopoly enforcement. Therefore, FAS undertook an obligation to form legal views for economic entities on “Dos and Donts” on particular market”.

To corroborate, Artem Molchanov outlined 7 Explanations issued by FAS Presidium on the principal issues of antimonopoly regulation. According to Head of FAS Legal Department, they are already incorporated in judicial practice, which confirms FAS conclusions on the importance of establishing such collegial body.