Andrey Tsyganov: it is multi-functionality that enables choosing the most efficient method of influencing issues

The international expert community discussed interaction between competition, industrial policy, and the global economy

An international publication Competition Policy International (CPI) and Global Antitrust Institute organized a narrow-format discussion in May in Porto (Portugal) on interaction between competition policy, industrial policy, and the global economy. Deputy Head of FAS Andrey Tsyganov took part in the event.

Participants discussed the issues of considering industrial policy by competition authorities in the course of investigating antimonopoly cases or setting conditions in merger control. An important item on the agenda was discussing possibility of coordination between national competition authorities when setting conditions in case of cross-border deals and the impact of conditions issued in a particular jurisdiction upon the state of competition outside this jurisdiction. Another item was “rent-orientation” or the influence of large companies upon competition authorities when national antimonopoly bodies discuss conditions for approving transactions between their competitors.

The moderators were Douglas Ginsburg, a member of the Appeal Court, Columbia (DC), US, a professor of University College of London, and David Evans, CPI Editor-in-Chief. The Round Table was attended by Heads of competition authorities from countries around the world (Australia, Belgium, Canada, Chile, Japan, Israel, Mexico, the Netherlands, Singapore, South Africa, Spain, Russia, the USA), law and consulting firms. The key speaker was Frédéric Jenny, Chairman of OECD Competition Committee.

In the course of the discussion Andrey Tsyganov commented on the importance of adjusting industrial and antimonopoly policy, and informed that in accord with the procedures of the Russian public administration system, FAS is an important part in the chain of coordinating industrial policies in order to eliminate collisions in the law. FAS is also finalizing the National Competition Development Plan (in which the key sectoral Ministries were involved upon the instructions from the Chairman of the Government, Dmitry Medvedev), under which the sectoral policies will be reoriented towards pro-competitive development.

Deputy Head of FAS specially emphasized the active role of competition authorities in changing the sectoral policy and law not only through competition advocacy but also as a result of consistent law enforcement. Andrey Tsyganov gave examples of:

- Oil product markets, where the “three waves” of cases on violating the antimonopoly law investigated by FAS resulted in radical reconsideration of the entire system of industry regulation on the pro-competitive basis

- Retail as well as car and pharmaceutical markets, where after a series of cases the Best Practice Codes were devised and self-regulation is developing

- Construction, where introduction of a special system of dispute settlement with FAS involvement was introduced as a result of suppressing repeated violations of the antimonopoly law and the law on procurement.

He emphasized the importance of the multi-functional nature of the competition authority for active intervention in sectoral policies. “It is multi-functionality that allows us to choose the most efficient way of influencing the issue in particular sectors of the economy. We can use enforcement under the frame of the law on competition, make decisions on tariff regulation, improve the rules of procurement, make sure that competition-restricting acts issued by the authorities are abolished or amended”, said Andrey Tsyganov.