ANDREY TSYGANOV: THE NUMBER OF CASES INVESTIGATED BY FAS KEEPS GOING DOWN

Informed Deputy Head of FAS in the annual Report on developing competition policy in Russia presented to OECD Competition Committee

On 8 June 2018, OECD Competition Committee (Paris, France) discussed national reports from members-states and OECD observer-states on competition policy in 2017, drafted by national competition agencies, including FAS.

Deputy Head of FAS Andrey Tsyganovshared Russian experience of antimonopoly practice in law-making and enforcement in 2017 with his foreign colleagues.

He started with a description of one of the most important events of the past year:  No. 618 Order “On the main areas of the state policy towards developing competition” signed by the President of the Russian Federation on 21 December 2017 and 2018-2020 National Plan for Developing Competition in the Russian Federation.

These documents determine the principles for interaction between the state and the society, implying intolerance to any incidents of unfair competition, cartels and abusing dominance, as well as establish active support to competition development as a priority for the President and the Government of the Russian Federation, all authorities and local self-government bodies.

“As one of the fundamental principles of the state policy towards developing competition, the Order determines improvement of antimonopoly regulation under the conditions of the digital economy and its globalization”, pointed outAndrey Tsyganov. “FAS drafted a law (the “fifth antimonopoly package”) that introduces new rules for regulation in view of modern challenges”.

The draft law, comprises, in particular, legal tools to counter collusion, executed through digital algorithms, requirements to prohibitions of abusing dominance in the part of using data and digital platforms, tools for control over economic concentration in the part of concentration of big data as a means for monopolization and taking into account network effects of digital platforms as a factor of strengthening market power.

Andrey Tsyganovoutlined the results of the first State Council after the elections of the President of the Russian Federation - on 5 April 2018. The State Council focused on developing competition in Russia. The participants highlighted the most pressing issues related to competition in Russia, including growth of state capitalism, wrong distribution of budgetary funds and regional separatism, and discussed measures necessary to achieve the goals specified in No. 618 Order.
Andrey Tsyganov also informed the Committee about the most interesting cases investigated by FAS in 2017.

“2017 was productive for FAS in terms of enforcement. The number of cases under investigation continues going down due to a focus on countering unfair practices of transnational corporations, that have a significant influence upon Russian national economy, and successful implementation of the institute of warnings and admonitions, while FAS judicial efficiency remains quite high: we win over 80% of cases”, emphasized Andrey Tsyganov.

Reference:

OECD Competition Committee annually asks OECD member-states and observer-states to submit reports on developing competition policy in their jurisdictions. The report structure contains both statistical data on the number of cases investigated in a year, appealed decisions inspections as well as information about the best practices of the national competition authority in the field of law and enforcement.  Thus, the Annual Report is a review of the most significant achievements of the competition authority.

FAS prepares Annual Reports in the field of developing competition policy in the Russian Federation on a yearly basis and submits the Reports to OECD. Presentations and discussions of Annual Reports take place at the meetings of OECD Competition Committee.