Igor Artemiev: we must develop a system of private enforcement in Russia

This tool should ensure fully-fledged protection of private persons from monopolistic activity

On 27 October, Head of FAS Igor Artemiev was the key speaker at the plenary session “Antimonopoly policy at the modern stage” at the IX Annual Conference on “Antimonopoly Regulation in Russia”. He outlined new tasks and the key issues of antimonopoly regulation.

Head of antimonopoly body reminded that FAS control-and-supervision reform had been launched in 2016 with adopting the “forth antimonopoly package”, which had reduced administrative burden upon business significantly.

The institutions of warnings and admonitions, introduced in 2012, have proved their efficiency – the execution rate is over 75%. For instance, 1728 cases were opened in the first six months of 2017 and 2166 warnings were issued on all types of violations of the antimonopoly law.

Head of FAS said that in October the Presidium of the Antimonopoly Service had approved explanations on determining the size of losses incurred as a result of breaching the antimonopoly law. He added: “And now we are launching a broad campaign for training how to work using this method”.

“In the experience of foreign countries, recovering damages is an efficient mechanism of antimonopoly regulation. For instance, the company that violated the Sherman Act in the USA pays a fine to the government under criminal procedures and triple damages under civil proceedings”, pointed out Igor Artemiev.

He emphasized: “In Russian practice there are also successful examples of damages recovery”. For instance, on a case for recovering damages caused by fixing different prices for counteragents, real damages were recovered to the benefit of the claimant exceeding 1.1 billion RUB. More than 1.6 billion RUB of loss of expected gain were recovered from the respondent for unfair competition due to acquiring and using a trademark.

“We must do everything not to punish a company but to prevent violations. The best way to achieve it is when people protect their rights”, stated Head of FAS.

Finally Igor Artemiev underlined:  Synergy of antimonopoly control, private enforcement and legal culture will be a part of our work for the foreseeable future”.

According to Igor Artemiev one of FAS tasks is to write a Chapter on digitalization to the Law “On Protection of Competition”, developing institutions of competition, including industry standards. Head of FAS stressed that the antimonopoly authority starts changing the definition of natural monopolies and abolishing an obsolete 1995 Law “On natural monopolies”. Another most important FAS objective is countering cartelized economy: “The anti-cartel system is already established in Russia and приноситсвоиплоды, but we intend to further enhance efficiency of combating anticompetitive agreements without excessive burden upon business”.