10-04-2019 | 14:30

FAS discussed the influence of digitalization upon the economy and antimonopoly regulation


The Antimonopoly Service and the Competition Law Department of Kutafin Moscow State Law Academy organized a Research-to-Practice Conference – “Development of antimonopoly regulation in digital economy” at the VI Moscow Legal Forum and the XVI Kutafin Readings.


Head of FAS Legal Department Artem Molchanov reported that after the Order of the President of Russia on the main areas of the state policy towards competition development, changes to antimonopoly regulation in view of the impact of digital economy is formalized at the highest level.


“It is one of the main principles of the state policy of the Russian Federation for developing and supporting competition. It should be fulfilled through analyzing the current law and regulatory approaches and understanding to what extent the legal tools toady are suitable to solve the issues raised by the modern economy”, pointedout Artem Molchanov.


“In the context of the current changes and challenges facing us today, we must understand whether antimonopoly regulation, which was established in the XIX and XX centuries and developed as regulation over tangible markets is applicable to these issues. Will we be able to regulate with tools those for whom the boundaries of countries sometimes mean nothing? Is today this peculiar sphere of life subject to state regulation and control that we see on traditional markets? We understand that the answer is “no” to a considerable extent. The traditional tools of market power may not work here. It forces us to take a fresh look at improving the antimonopoly law”, emphasized Head of FAS Legal Department.


He described the “fifth” antimonopoly package refined following discussions with the business-community and Russian information-and-communications companies. Artem Molchanov said the draft law is approved in general by the Government Commission on digital economy.


Head of FAS Legal Department put forward an idea on changing the sectoral law in view of the amendments to the Federal Law “On Protection of Competition”.


“It is not possible to stop at the preparing to submit the proposals that should regulate the market.  We must contemplate that parallel processes must be accompanies by changes to the sectoral laws. The latter should get new terms and definitions that the economic reality gives us. Perhaps, we can be a driver and show that such definitions should be included in the Civil Code, the law on information and information technologies, and then there will be an overall progress”, explained Artem Molchanov.


Head of FAS Department for Regulating Communications and Information Technologies, Elena Zaeva also took part in the event. In her opinion, relations on digital markets change must faster than on the traditional ones since there are fewer market entry barriers.


Regarding economic analysis, she said that FAS will analyze digital platforms markets, taking into account the important and usefulness of their performance for all consumers, as well as substitutability.


Finally, Elena Zaeva asked the legal community to consider not only legal terminology building up their positions regarding economic approaches to market analysis, but also take into account the real-world effects, under which the modern economy functions.


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