ANDREY TSYGANOV: DIGITALIZATION OF THE ECONOMY IS A CHALLENGE FOR COMPETITION AUTHORITIES

15-03-2019 | 14:12

Deputy Head of FAS discussed the results of considering economic concentration deals and investigating digital cartels at an event in Berlin

Deputy Head of FAS Andrey Tsyganov took place in the 19th International Competition Conference in Berlin (Germany) on 13 - 15 March 2019. He shared FAS experience in investigating global mergers and the response of the antimonopoly body to the challenges of the modern economy at a workshop for young competition authorities.

Deputy Head of FAS described the specifics of considering “Bayer/Monsanto” and “Yandex.Taxi/Uber” mergers and investigating cases against digital giants – “Apple”, “Google”, “Microsoft”.

He emphasized that digitalization of the modern economy incurs challenges for competition authorities. They include the big role of aggregators, algorithms, impact of network effects, the global nature of business relations and international violations of the norms of the national antimonopoly law, etc.

Among responses to the challenges of the digital economy, Andrey Tsyganov mentioned the “fifth antimonopoly package” drafted by FAS that introduces the concepts of “network effect”, “algorithms”, clarifies definitions of dominance and the merger control rules. 

The speaker shares FAS experience with the workshop participants on exposing and proving the so-called “digital” cartels” and reported about a multi-parameter system for exposing and proving such cartels that analyses over 50 indicators and is developed by Russian antimonopoly body.

Finally, Deputy Head of FAS emphasized that “globalization determines the growing need in strengthening international cooperation in the field of competition between the antimonopoly authorities from different countries. Such cooperation provides for bilateral as well as multi-lateral interaction”.

Reference:

The International Competition Conference is an annual event organized by the Federal Cartel Office of Germany. It is traditionally attended by Heads of competition authorities, the European Commission, representatives of international organizations such as OECD, UNCTAD, research and business communities. The purpose of the event is to discuss a wide range of the existing legal and economic aspects of competition policy and exchange the best enforcement practices.  

The key speakers at the 19th Conference were German Federal Minister for Economic Affairs and Energy Peter Altmaier, the European Commissioner for Competition Margrethe Vestager, State Secretary of German Federal Ministry for Economic Affairs and Energy Ulrich Nussbaum, as well as Heads of competition authorities from the UK, France, Lithuania, Korea, South Africa and Singapore.

The 2019 Conference brought together over 350 participants from 70 countries.



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