IGOR ARTEMIEV: OUR JOB IS TO FULFILL THE PRESIDENTIAL ORDER ON DEVELOPING COMPETITION
Stated Head of the Antimonopoly Service Igor Artemiev at the extended FAS Collegium
The extended Collegium of the antimonopoly body took place on 25 April 2018 in Yalta. The event was opened by Head of the Republic of Crimea, Sergey Aksenov. In the welcoming remarks he emphasized the importance of antimonopoly regulation in general.
“We understand that such fields of activity as public procurement, tariff policy are impossible without high-quality law. Through joint efforts with the antimonopoly authority, we will execute all tasks set for us by the President of the Russian Federation and Crimea citizens”, reassuredSergey Aksenov.
According to Head of FAS Igor Artemiev, the main achievements of the work of the antimonopoly body in 2013 - 2018 include adopting the “forth antimonopoly package of laws”, harmonization of Russian and European antimonopoly laws, assigning powers on tariff regulation and public defence procurement to FAS, which generated synergy of powers of the antimonopoly authority.
“In December the President signed the Order “On the main areas of the state policy towards developing competition”. Nothing like this has happened before in our history. Now the plans for developing competition in industries will be approved every five years. I feel joy that we can do something and we have such serious support from the President. It is very important”, pointed out the Head of FAS.
The main results of FAS work in the 6-year period also include adopting amendments to Nos. 44-FZ and 223-FZ Federal Laws, transferring procurement in the electronic form and adopting the act on pricing in public defence procurement.
Igor Artemiev highlighted employing new approaches to violations of the antimonopoly law and economic concentration, giving the examples of cases against “Google” and “Microsoft”, digital cartels, mergers – “Bayer-Monsanto”, “Yandex.Taxi and Uber”.
“We do not consider mergers in terms of integration; we talk about synergy effects, which will influence the economy of different industries in general. At the same time, we take into account network effects and the impact of big data upon conditions of competition”, informed Head of the antimonopoly authority.
Head of FAS emphasized that the requirements of the antimonopoly authority to mergers have changed recently: from “standard” sale to sale with technology transfer. In the opinion of Igor Artemiev, it increases possibility of fair competition on the world market.
Among FAS achievements in that period Head of the antimonopoly authority mentioned development of exchange trading. He also described the work done in tariff regulation.
“After transferring tariff policy powers to FAS, there was a transition to the “inflation minus” principle. Setting tariff below the inflation level creates favourable conditions for consumers, developing small and medium business. Now it becomes a competitive advantage for consumers. Certainly, in the near future the trend will maintain,” added Igor Artemiev. “Another moment is benchmarks. They enable us to assess pretty accurately the level of actual costs needed by companies for normal performance. Approximately 75% regions today live above the benchmarks and we have a fantastic opportunity: it is not mandatory to reduce the tariffs but it is possible, for instance, to request that the difference between the benchmark costs and the actual tariff should be allocated only for investments, which would ultimately increase efficiency of monopolies”.
“FAS pays special attention to the social field. Following the results of an international investigation of drug prices, FAS managed to reduce prices on average by 50% for more than 500 medical drugs”, said Igor Artemiev.
Efforts are being undertaken to improve the situation on the market of international roaming, national and so-called “intra-network” roaming. Head of FAS pointed out that “we managed to win in this areas” in Crimea.
In general, Igor Artemiev pointed out that the objectives for the 6-year cycle specified in 2020 Strategy for antimonopoly regulation are fulfilled. As a future strategy, he emphasized the transition from the protective function to the function of active development of competition at the federal, regional and municipal levels.
“Our main objective for the next six years is fulfilling the Order of the President of Russia to develop competition across sectors of the economy. If the Order is fulfilled, then our mission also will be accomplished”, concluded Igor Artemiev.