PUBLIC COUNCIL UNDER THE FAS RUSSIA SUPPORTED DRAFT OF THE «FIFTH ANTIMONOPOLY PACKAGE»

The draft law is intended to protect consumers against the abuse of large companies with a dominant position in digital markets.

The "fifth antimonopoly package" was the key topic of the meeting of the Public Council under the FAS Russia, which was held at the service's site. The meeting was moderated by Andrey Sharonov, Chairman of the Public Council.

Artem Molchanov, Head of the Legal Department of the FAS Russia, noted in the report that in addition to the benefits, the digitalization of the economy also carries risks associated with the monopolization of commodity markets and the possibility of abuse of market power by "digital giants" to the detriment of citizen interests. In these circumstances, the state must have the tools to protect consumers from abuse of dominance in digital markets. The proposed by the FAS changes to the Federal Law on Protection of Competition are aimed at the formation of such tools.

The changes provide for measures by which antimonopoly legislation could create barriers to abuse in digital markets:

- the spread of prohibitions on abuse of dominance to digital platforms (marketplaces, aggregators) that ensure transactions between sellers and buyers on the Internet;

- determination of the criteria for such platforms: ownership of the program (infrastructure), which is used to conclude transactions between buyers and sellers; network effects; more than 35% share in the market of interchangeable services to ensure the possibility of making transactions; revenue of over 400 million rubles for the last calendar year from the platform's activities;

- new approaches to transactions of economic concentration: if the transaction price exceeds 7 billion rubles, it requires the approval of the FAS Russia (especially relevant for markets where companies that own information technologies and the results of intellectual activity operate);

- usage of digital algorithms in anti-competitive agreements should be an aggravating circumstance.

The adoption of the fifth antimonopoly package will ensure the effectiveness of antimonopoly control measures in the conditions of modern digital markets and create legal mechanisms to counter the abuse of market power by "digital monopolies" and "digital cartels".

Also during the meeting of the public council, Aleksey Kozhevnikov, Vice President, All-Russian Non-Governmental Organization of Small and Medium-Sized Businesses "OPORA RUSSIA", made a report on the topic "Non-discriminatory access of small and medium-sized businesses to online intermediaries". In addition, the work plan for 2021 of the Public Council under the FAS Russia was approved at the meeting.

For reference:

Public council is permanent advisory and consultative body of public control.

Its main objectives: to exercise public control over the activities of the FAS Russia, including reviewing projects developed by socially significant regulatory legal acts; to participate in monitoring the quality of public services, the implementation of control and supervisory functions, the progress of anti-corruption and personnel work, evaluating the effectiveness of public procurement, reviewing the annual plans of the FAS Russia and the report on its implementation.

Meetings of the Public Council under the FAS Russia are held at least once a quarter.