FAS, COMMISSION ON APPLYING FAIR PRACTICES CODE AND MINISTRY OF INDUSTRY AND TRADE SIGNED AGREEMENT ON COOPERATION

On 3 June 2019, Head of the Federal Antimonopoly Service Igor Artemiev, President of SKOLKOVO Business School, Chairman of the Commission for applying the Fair Practices Code, Andrey Sharonov, and Stats-Secretary, Deputy Minister of Industry and Trade of the Russian Federation, Viktor Evtukhov signed an Agreement on Cooperation. The signing ceremony took place during Russian Retail Week 2019.

Starting his speech, Igor Artemievpointed out that “for already many years the antimonopoly body supports associations formed under the sectoral and inter-departmental principles because we believe that the regulatory parameters in Russia are close to re-regulation. An endless reshuffling from adopting new laws and amendments does not improve the investment climate and moods in different sectors of the economy”.

Andrey Sharonov said that signing the Agreement is an important step, which will allow the Commission to extend its powers, thus, increasing the efficiency of self-regulation tools, particularly, the system of participants’ motivations, both in encouragement and punishment.

Head of the antimonopoly authority compared the relations that are being formed lately between retail and suppliers, with fierce battles between gladiators on the arena of Rome Coliseum. He emphasized that developing Russian economy needs harmonization of relations between all market players, which cannot be achieved only by the efforts of public institutions.

“Common regulatory rules typically are quite abstract because they are adopted by public servants and members of legislatures who are not fully immersed in the core of the matter, relations, production processes. It concerns all sectors without exceptions”, emphasized Head of FAS. “Therefore, when professional unions and associations emerge along the entire chain of relations from the start of production to selling the products that enable to find a harmonized, compromise solution in each particular case, FAS can only support such initiatives”.

In the opinion of Head of FAS, development of in-house arbitration at professional self-regulated organizations on the basis of fair practices would reduce considerably the number of open cases and inspections and allow public bodies to act as observant.

According to Igor Artemiev, “soft force is always more efficient in business than coercive or control power”. It is exceptionally important that soft power can strongly restrict corruption in public machinery. It is also more flexible. It means that market players can promptly adjust to the changing conditions, while adopting a new federal law or amendments to it is a rather long and complex process.

“Our arrangements are very important for FAS as they will encompass not only fair practices by are representatives of retail and suppliers will support each other in implementing the Fair Code Practice. I.e., the association should in fact adopt the role of an arbitrator, where competent people will make decision on each particular case and notify the regulator. At the same time, interaction must be ongoing. Practice will be based on this. If your in-house arbitrage will be launched, in 2-3 years you will not need us practically”, stated Head of FAS.