ANATOLY GOLOMOLZIN ON THE PRACTICAL OUTCOME OF THE EFFORTS OF ANTIMONOPOY OFFICERS IN CIS SIGNIFICANT MARKETS
Deputy Head of FAS Anatoly Golomolzin made a report commemorating ICAP 25th anniversary
On 26 September 2018, the Interstate Council on Competition Policy (ICAP) held a jubilee session during the Russian Competition Week.
Highlighting the results of ICAP work, he stated that from the outset joint efforts were aimed at developing and harmonizing the antimonopoly law in the CIS, enhancing efficiency of independent competition authorities, exchanging experience of antimonopoly enforcement.
Recently, emphasized Anatoly Golomolzin, considerable attention has been paid to joint law-making initiatives of the CIS competition authorities. Upon ICAP initiative, in 2017 Heads of CIS Governments signed a “Statement of the Heads of the Governments of the CIS member-states on consolidating efforts of the international community to efficiently counter international cartels”, considered by UN General Assembly. The Statement confirms the need to develop and adopt an international anti-cartel Convention. Also upon an initiative of CIS antimonopoly officers, UNCTAD is discussing Toolkit on International Cooperation of Competition Authorities on Combating Restrictive Business Practices of Transnational Corporations and Transborder Violations of Rules on Competition.
Among the most significant practical achievements, Deputy Head of FASmentioned joint investigations and enforcement of the antimonopoly law on socially important markets and markets essential for economic integration on the CIS market space.
Anatoly Golomolzin highlighted the results of the works of ICAP Headquarters for Joint Investigations of the Antimonopoly Law by the CIS Member-States (the Headquarters). Before making the report, he presented a book of CIS antimonopoly officers, the Antimonopoly Experts Association and the “Competition Support in the CIS” Non-Profit Partnership” Association: “The Interstate Council on Competition Policy: practical results of its activities”.
“In ten years of the Headquarters’ work several Reports were prepared on the state of competition on socially important markets. Recommendations of antimonopoly officers were supported and approved by the Council of the Heads of CIS Governments. To execute the decisions, the antimonopoly bodies of the CIS member-states, including Azerbaijan, Armenia, Belarus, Moldova, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, pursued measures enabling to radically improve the situation in the economy”, informed Anatoly Golomolzin.
“As a result of joint work, over the last years the scope of carriage in the CIS member-states is marked at the level of double digitals, 10 - 25 % per year. It happens not because of a changed economic situation but due to the changes proposed by us in our report. Further, we will discuss the rules and processes for improving aviation operations, which will also require changes to the law. We should reach the parameters of aviation accessibility, now the CIS is rightly 2.5 times behind the EU and 4 times behind the USA in transport accessibility”, pointed out the Headquarters’ Chairman.
“At the new stage, in 2018 there was a joint session of IAC Coordination Council and the CIS Headquarters for Joint Antimonopoly Investigations analyzed further proposals for developing the air transportation market. In particular, it concerns improving the law to sanitize problematic airlines, developing airport infrastructure, developing low-budget air transportation, discussing “open sky” development, digitalization, including smart aviation fuel supplies, improving the work of booking and ticket sale operators, cybersecurity in aviation”, reported Deputy Head of FAS.
Regarding development of the telecommunications market, Anatoly Golomolzin highlighted achievements in reducing the costs of communications service and avenue for further advancement in this sector.
“Tariffs for roaming communications services between our countries decreased from 5 to 20 times due to joint antimonopoly investigations. We approved the fair roaming principles observed by the operators. Today there are preconditions to keep further improving the situation on the basis of these achievements. The plans include solving the roaming problem with our colleagues from Belarus”, commented Deputy Head of FAS.
According to Anatoly Golomolzin, the modern ICAP agenda includes the need to form conditions for developing competition in the digital economy and improving in this context the framework of antimonopoly regulation for the CIS member-states.
“In October the issue will be discussed by the Economic Commission of the CIS Executive Committee. Antimonopoly officers propose pro-competitive measures for developing digital economy programme, including prevention of monopolization of digital economy infrastructure, as well as improving the antimonopoly law, particularly, tools for analyzing transactions in view of the specifics of digital markets and refining the mechanisms for suppressing violations by digital giants under globalization of the world economy”, saidAnatoly Golomolzin.
He considers oil and petrochemicals among the most important markets.
“Antimonopoly bodies apply coherent approaches to market analysis and suppressing violations of the antimonopoly law on the CIS markets of oil and petrochemicals. Measures on increasing transparency of the operations of oil companies are promoted; broad development is given to exchange trading. Exchange trading should be further developed. Along with Russian companies, firms from Belarus are involved in exchange trading at SPIMEX. Consultations with other CIS states were carried out on participating in exchange trading. Many our colleagues have already taken part in the Exchange Committee, and we think it should be done on a regular basis”, clarified Deputy Head of FAS.
He highlighted the line of improving retail, work of supermarket chains and regulating the medicinal drug market.
“Practical recommendations on the drug markets helped improve sectoral regulation in this field, reduce medicine prices multifold, which significantly protects consumer interests and saves the budgetary funds. In view of this experience, we agreed that we will coordinate our work in the segment of medicinal products. We have analyzed the market trends, devised measures and proposals on improving them. By the end of the year, we will finalize our proposals soc that at the beginning of the next year they can be submitted to the CIS Executive Committee for approval and giving instructions to competition bodies and all interested authorities on improving the situation”,informed Deputy Head of FAS Anatoly Golomolzin.
Finally, Anatoly Golomolzin pointed out that in the near future the CIS Executive Committee will consider a report on the significant results of practice-oriented joint efforts.