17-03-2021 | 10:50

Leading experts in various fields of law discussed what mistakes are found in the practical application of competition legislation

Artem Molchanov, Head of the Legal Department of the FAS Russia, took part in the session “Mistakes in Building an Asset Management System” of the practical conference “Critical Business Mistakes: How to Avoid them and how to Use them” organized by the Association of Corporate Lawyers of Russia (ACLR).

He devoted his report to the specifics of the work and possible mistakes of lawyers in countering monopolistic activities and unfair competition.

In each of the cases investigated, the antimonopoly authority obtains a sufficient amount of evidence, fully and comprehensively establishes the factual circumstances related to the behavior of economic entities in order to make an appropriate reasoned decision[1].

The results of the analysis of the state of competition and the determination of the relevant product market are mandatory written evidence [2]. However violations can be prevented if the organization adopts a system of internal compliance with the requirements of the antimonopoly legislation - antimonopoly compliance.

The FAS Russia, together with the ACLR, is preparing clarifications on the implementation of antimonopoly compliance. We want to convey the idea that the soft law policy is beneficial for the companies themselves, for the regulatory authorities and for the economy as a whole,” Artem Molchanov said.

The Company has the right to voluntarily submit documents confirming compliance to the antimonopoly authority. In turn, the FAS Russia reviews these documents within 30 days and gives an opinion on their compliance or non-compliance with the requirements of the antimonopoly law.

“In the case of a positive decision, the FAS Russia seems to say “yes, this proposal is in line with the antimonopoly law”, and assumes responsibility. Therefore, if the company acts within the framework of the approved compliance, then there will be no complaints  on  violation of the law. The main incentive for implementing compliance is to identify risk factors in advance, which allows the company to protect itself from possible fines or criminal prosecution of officials,” Artem Molchanov said.

At the same time, the authority is ready to cooperate and help organizations in matters related to the state of competition, including the disclosure of market research mechanisms.

In conclusion, Alexandra Nesterenko, the President of the ACLR commented: “The conference was filled with lively discussions, additions from the audience, there was an exchange of experience, comprehensive consideration of many new business aspects.Thereby, speakers and participants have the opportunity to apply in practice the knowledge gained and avoid many non-obvious mistakes.”

[1] Ruling of the Constitutional Court of the Russian Federation of October 26, 2017 No. 2496-O

[2] At the same time, under the concept of “commodity market”, the Law on Protection of Competition understands the sphere of circulation of goods that cannot be replaced by another product (or interchangeable goods), within the boundaries of which, based on economic, technical or other possibilities or expediency, the buyer can purchase the goods, and such an opportunity or expediency does not exist outside of it. Order of April 28, 2010 No. 220 of the FAS Russia approved the procedure for analyzing the state of competition in the commodity market.

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