12-03-2019 | 10:35

Preconditions for changes include digital economy and increasing number of cartels

On 5 March 2019, Kutafin Moscow State Law University held a Round Table on “modern Issues of modernizing the antimonopoly law: new risks, future priorities”. The Round Table was organized by the Competition Law Department of the University.

A part of the Round Table was a session of the Commission on improving the antimonopoly law of the Moscow branch of the Association of Russian Lawyers.

The welcoming addresses were given by Deputy Chairmen of the Commission on improving the antimonopoly law – Head of FAS Anti-Cartel Department, Andrey Tenishev and a member of the Central Electoral Commission of the Russian Federation, a Professor of the Competition Law Department of the Kutafin Moscow State Law, Alexander Kinyov.

Head of FAS Legal Department Andrey Molchanov described the efforts to find a legal construct of dominance on digital markets:

“Traditionally, we evaluate company’s market share, but it is a specifics of digital economy that companies do not have such shares. They sell, for example, hotel services, but do not own the hotels, or sell taxi services without possessing a taxi fleet. Thus, they do not have a market share. We talk about the share of transactions performed via a digital platform. This approach was developed through discussions with the business community. It can be a dominant company only if the digital platform controls no less than 35% market of substitutable services offered via it. At the same time, we have introduced restrictions: in any case the dominant position cannot be recognized if the revenue of a digital platform is less than 400 million RUB per year. In our opinion, it will trigger start-ups development. They cannot be recognized dominant – under no conditions”.

Andrey Tenishev touched the issue of liberalizing criminal liability for restricting competition.

He pointed out: "The current economic and foreign policy situation that stimulates a growth of cartels and other anticompetitive agreements, their penetration in strategic, vital spheres of the state that form the basis of the national security, require an adequate response, particularly, changes to the law of the Russian Federation that will reflect a significantly increased public danger of cartels and will facilitate development of the practice to counter them”.

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