FAS GIVES FINE DEFERRALS

The Antimonopoly Service instructed its regional Offices to grant deferrals of fines to ease the financial burden upon business

Deputy Head of FAS Sergey Puzyrevsky discussed legal solutions amid fighting the new coronavirus infection (COVID-19). He moderated the “Antimonopoly regulation in the pandemic” session on the online-platform of St Petersburg International Legal Forum.

FAS and its regional Offices have to respond immediately to the changes related to COVID-19, especially on those socially important markets that are essential for the population.

“The existing limitations of economic activity due to self-isolation of staff and the quarantine measures lead to a decreased demand for some categories of goods, and in other sectors, on the contrary, demand has increased considerably – such as food products, basic consumer goods, medicinal drugs and medical products. Naturally, under these conditions considerable attention is paid to observing the antimonopoly rules in the course of pricing. Special attention is also given to operations of natural monopolies that must support proper functioning of enterprises and the population”, stated Sergey Puzyrevsky.

Deputy Head of FAS pointed out that due to the latest events in the world economy the Antimonopoly Service has changed customary antimonopoly regulation over business: all scheduled inspections are abolished in 2020 and the number of unscheduled inspections is reduced and they are now carried out only when there is danger to life and health of people.

Also, high-priority meetings of FAS Commissions for considering cases and complaints are now organized remotely, while other meetings and events are postponed to the maximum possible periods specified in the law. This is done to pursue self-isolation.

In terms of public procurement, the pandemic is recognized as a force majeure, and it is taken into consideration by FAS and other government agencies.

“When decisions are made to hold economic entities administratively liable, we instruct our regional Offices to defer the imposed fines. The purpose is to ease the financial burden upon business”, emphasized Sergey Puzyrevsky.

Deputy Head of FAS reminded that under the conditions of the pandemic, government regulation of the markets of socially important goods is strengthening because some goods generate significant demand so supply should be adequate, since conventional market instruments do not always work to achieve price control. Elements of government price regulation are introduced to this end. In some sectors demand is pushed up but there are enough goods to satisfy the needs of the population, and antimonopoly mechanisms should apply to these sectors. Unreasonable overpricing must be rigidly suppressed.

Sergey Puzyrevsky also underlined that artificial overpricing and cartels by producers are unacceptable. He gave examples when careless statements from market representatives had resulted in unreasonable overpricing. For instance, FAS issued warnings to several top-executives – Director of Rusprodsoyuz (the Association of Food Producers and Suppliers)and President of the Russian Union of Mills and Cereal Companies.

“All these situations require clear and consistent antimonopoly control, and I can confirm that the system of the antimonopoly bodies works on a daily basis, without week-ends, and reacts to the facts of unreasonable overpricing. Special attention is paid to natural monopolies because imposing disadvantageous conditions, services, overpricing and refusals to conclude contracts in this context are more sensitive for consumers. Therefore, here reactions of the antimonopoly authorities should be pretty tough and fast”, said the speaker.