ANTIMONOPOLY REGULATION THROUGH THE PRISM OF THE EVENT
Deputies of the Head of FAS and Heads of specialized FAS Departments summed up the results in all fields of work of the competition authority
The X Annual Conference – “Antimonopoly Regulation in Russia” organized by the “Vedomosti” newspaper and the Antimonopoly Experts Association with support of the Federal Antimonopoly Service took place onOctober 26, 2018.
Attendees included representatives of the legislative, executive and judicial authorities, leading lawyers, economists and companies’ top-executives.
The first session at the conference discussed the main events in 2018 and their impact upon antimonopoly regulation.
Deputy Head of FAS Sergey Puzyrevskiy informed about the Order of the President of Russia regarding the main directions of the national policy towards developing competition, which Sergey Puzyrevskiy called a historic event for antimonopoly regulation in Russia.
He emphasized: “The document introduced a new quality of competition development: in the first Clause of the Order active competition support is emphasized as a priority for the President and the Government of Russia, federal, regional and local authorities. It means that all decisions in Russia should be made through the prism of evaluating their consequences for competition. Since the Order on the main directions of the national policy towards developing competition is a strategic document, and FAS now is involved in strategic planning, developing competition is serious and hopefully long-term work. The President brought together for the State Council not only the Government but also Heads of 85 regions and gave them clear instructions: take competition development seriously so that it becomes visible”.
Deputy Head of FAS Anatoly Golomolzin drew attention to practice implementation of the National Plan and structural reforms in regulating the markets of gas, oil and oil products, tariff policy and the digital markets pursued by FAS.
He said: The general situation in the economy has changed radically, digitalization is on its way, and the antimonopoly bodies have reacted to the changes. Antimonopoly response practice has changed considerably; we analyzed new mergers, applies new approaches. The Presidential Order guides us to improve the regulatory framework covering the changes in the economy”.
Regarding exchange trade development, Anatoly Golomolzin stressed the efforts to expand the list of products for exchange trading and the tools that truly stimulate economic development. He gave an example of recently emerged on-exchange trading with timber.
Discussing the work of the antimonopoly authority in the field of tariff policy, Deputy Head of FAS Sergey Puzyrevskiy pointed out:
At the moment there is no base infrastructure law on tariff-setting procedure. It is absolutely wrong in the modern economy so FAS drafted a federal law on the basics of government price regulation which should give clear and transparent rules of tariff regulation”.
Head of FAS Anti-Cartel Department, Andrey Tenishev talked about tightening liability for participation in anti-competitive agreements:
“The Presidential instructions are to tighten criminal and administrative liability for cartels. FAS cooperates actively with the law enforcement bodies in this filed. The Antimonopoly Service is a member of the inter-departmental anti-cartel group at the General Prosecutor’s Office of the Russian Federation. The same groups will be formed in the regions of Russia. Earlier criminal cases against cartels were rare. This year, already more than 20 cases are opened, and the first ones have already been heart at Courts. The investigators and prosecutors increasingly more often choose detention of cartel participants as pre-trial restrictions. Practically all pending cases are related in one or another way to the authorities and their representatives are also held criminally liable”.
According to Andrey Tenishev, every year FAS passes nearly 200 decisions on anticompetitive agreements involving the authorities.
Head of FAS Department for Control over Social Sphere and Trade, Timophei Nizhegorodtsev informed the Conference about regulation of the pharmaceutical sector:
“Right has two states: right as a set of values declared by the law and right that an individual or the state can implement in its most broad sense. The pharmaceutical market is a striking example of such a discrepancy: it has demands for fair competition in goods circulation, for suppressing abuses of dominance, absence of artificial monopolies. In this context, the Road Map for developing competition in health care is the tool, using which we endeavour to exercise the antimonopoly right of the population, the state and economic entities so that they can get an effect from competition”.