Andrey Tsarikovskiy had a bilateral meeting with the Head of South African antimonopoly body
The main discussion points were implementing “guidelines” on container shipping in BRICS countries, Russian cases in car manufacturing, pharmaceuticals and FAS plans to devise new approaches in antimonopoly regulation under digitalization of the economy.
“Ocean container shipment is a global industry by definition. Route networks are linked between each other and consumers in different countries compete for a place on board of the same vessels. That is why these operations have impact upon multiple countries and it is absolutely necessary to develop global cooperation on substantive legal issues”, emphasized Stats-Secretary Deputy Head of FAS Andrey Tsarikovskiy. “Recently FAS and some ocean liner carriers reached an amicable settlement, in line with which we drafted guidelines for companies’ voluntary conduct in terms of pricing. It is expected that container carriers agree not to publish planned or possible price changes for shipments to and from Russian ports”.
The parties discussed possibility of signing a joint declaration of BRICS competition authorities on implementing guidelines for container shipment in BRICS.
Regarding market self-regulation, Andrey Tsarikovskiy mentioned the Code of Conduct for Car Manufacturers, which is quite successful in Russia. The idea is that “it determines the fundamental principles for interaction between car manufacturers and distributors with dealers and independent service stations”. Based on FAS Fair Practices Code for Car Manufacturers, the South African Commission on Competition has drafted its own Code and intends to introduce it on the South African car market. The draft is now accessible on the web-site of SA Commission on Competition. Andrey Tsarikovskiy pointed out that FAS is prepared to assist in further Code promoting and refining.
He also thanked his South African colleagues for the material provided on investigations of the antimonopoly law on the car manufacturing market in South Africa and presented current investigations in this sector in Russia.
The Head of FAS delegation proposed to hold the first session of the Working Group on studying competition in the car sector* at a Research-to-Practice Conference in Skolkovo (6-7 December 2017).
Deputy Head of FAS informed that the antimonopoly body is devising 2017-2018 Plan on developing new approaches to antimonopoly regulation due to expanding challenges of Global Value Chains and the Fourth Industrial Revolution, particularly, broad digitalization of the economy.
He drew attention of the foreign colleagues to FAS experience of analyzing medicinal drug prices. For all incidents when the producers’ ex-works prices registered in Russia exceed the minimum price in the reference countries, FAS applies a set of measures to reduce them to the revealed minimum level.
Andrey Tsarikovskiy also highlighted the practice of combating cartels in Russia: “We pay most close attention to countering anticompetitive agreements. These initiatives are supported at the highest level: on 5 August 2017 the President of the Russian Federation approved the list of high-priority measures designed to expose and suppress cartels”.
Finally, Andrey Tsarikovskiy stressed solid and trustworthy relations between the antimonopoly bodies of Russia and South Africa. He thanked representatives of South African Commission on Competition for taking part in the session of the International Working Group on studying competition on the pharmaceutical markets in March 2017 and in the meeting of representatives of BRICS competition authorities in May 2017 and invited them to participate in the “Competition Week in Russia” international event in Veliky Novgorod on 18 - 22 September.
*The decision to form the Working Group on studying competition in the car sector was made by BRICS Steering Committee on Antimonopoly Policy during the 2016 Competition Week.