CONTROL OVER ECONOMIC CONCENTRATION WILL BE MORE TRANSPARENT AND PREDICTABLE
The FAS Russia is preparing clarifications for monitoring mergers and acquisitions
On the 2th of July, 2020, specialists of the FAS Russia Methodological Council jointly with representatives of the Association of Antimonopoly Experts, reviewed a draft explanation of the specifics of state Antimonopoly control over economic concentration. In particular, the thresholds for pre-approval of transactions, access of third parties to the application materials, methods for calculating assets, conditions for extending the terms of consideration of the application, and a number of other issues. The final text of the explanations will be approved at a meeting of the Presidium of the FAS Russia.
"Increasing the level of concentration may create conditions for individual economic entities to dominate in the commodity market. In this regard, it is important to have preventive mechanisms aimed at preventing violations, identifying and controlling the conditions for possible abuse. The FAS Russia pays special attention to the control of mergers and acquisitions," said Andrey Tsyganov, Chairman of the Methodological Council and Deputy Head of the FAS Russia.
"The explanations of the Presidium of the FAS Russia are intended to provide answers to the main substantive and procedural issues of controlling mergers and acquisitions, based on extensive law enforcement practice and modern approaches to analyzing transactions, making decisions and formulating regulations that guide the Russian Antimonopoly Agency," Andrey Tsyganov said in his speech and added:
"Like all the previously approved explanations of the Presidium of the FAS Russia, this document will ensure a uniform interpretation of the Law on Protection of Competition, the provisions of the FAS Regulations governing the control of economic concentration, and will make the practice of the Antimonopoly Agency more understandable and predictable for businesses".
The experts also reviewed the enforcement of the Action Plan for the implementation of the Strategy for Development of Competition and Antimonopoly Regulation in the Russian Federation for the period up to 20301.
Besides, the Methodological Council also discussed the draft "white" and "black" books of pro-competitive and anti-competitive regional practices for 2019, which will be published on the FAS Russia website soon.
Notes:
1 Order of the FAS Russia of 17.04.2020 No. 410/20 (the First stage - 2020-2024).