IGOR ARTEMIEV: MARKET BOUNDARIES IN THE DIGITAL ECONOMY ARE THE ENTIRE WORLD
Head of the FAS Russia called upon foreign competition authorities to develop new approaches to antimonopoly regulation
“In the digital economy, competition authorities must understand where market power comes from. It used to come from companies that had dominant positions; now it is generated by various internet-platforms and related network effects since they have a strong impact upon adjacent markets”, said Head of FAS Igor Artemiev at the IV International Research-to-Practice Conference “Antimonopoly Policy: Science, Practice, Education” that took place in Skolkovo on 6-7 December.
Head of FAS emphasized that competition authorities should collaborate globally because completely new markets emerged where the whole world is their boundaries.
“Such close cooperation on antimonopoly and tariff regulation now comes to the forefront. Together we should develop new approaches. It is worthwhile for competition authorities to form a Coordination Centre to counter adverse cross-border consequences”, pointed out Igor Artemiev.
Head of FAS underlined that just few years ago the list of the largest companies was topped by four companies form the raw materials sector; and nowadays, in 2018 all five capitalization leaders are digital companies (Google, Amazon, Apple, Facebook and Microsoft).
The changes in the economy formed the grounds for drafting amendments to the Law “On Protection of Competition”: the so-called “fifth digital antimonopoly package”.
“We are now discussing it with all stakeholders to devise completely new definitions in antimonopoly regulation, so they can general a positive effect for our economy. Both the new approaches and definitions must be formalized by a legal act that will take precedence over”, informed Igor Artemiev.
In the FAS opinion, mergers analysis should involve experts and be public as many such transactions influence human lives. As an example, Head of FAS mentioned the Bayer – Monsanto merger that became the first such merger in the field of antimonopoly regulation.
“We will also implement a scientific approach employing the state-of-the-art technologies and engaging experts form the best universities”, promised Igor Artemiev.
The “fifth digital antimonopoly package” also specifies new approaches to control over enforcement of FAS orders and injunctions.