OECD discussed specifics of national principles of merger control

On 15 June 2016, No. 3 Working Group on of Cooperation and Enforcement of the Competition Committeeof the Organization for Economic Cooperation and Development (OECD) had a meeting in Paris to discuss specifics of the national principles of merger control. The Head of the International Information Communications Unit, at FAS Department for International Economic Cooperation, Anna Pozdnyakova outlined Russian experience of changing the competition law in the part of merger control.

Starting up, she pointed out that in the past several years FAS pursued a consistent policy of reforming the national merger control system and achieved significant success in this field.

Every year the number of transactions subject to FAS control goes down. In 2007 FAS considered around 6000 pre-merger notifications and 44 000 post-merger notifications; in 2015 - 1793 pre-merger notifications and 165 post-merger notifications. It became possible through successive implementation of the four packages of amendments to the antimonopoly law and abolishing “notice” merger control on 30 January 2014.

In 2015 the so-called “forth package of amendments” to the antimonopoly law was adopted in the Russian Federation. Some provisions concern changes in the national principles of merger control. To simplify and make information available, it is now possible to file pre- and post-merger notifications electronically. Data on the field notifications for transactions or other actions now must be published on FAS official web-site. The novelty enables the interested persons to promptly send information about an expected transaction (action) to the antimonopoly body, while the antimonopoly body will be able to get an insight in the possible consequences of a transaction (action) prior to making a decision on a particular notification.

Economic entities now can discuss in advance transaction conditions with FAS specialists, which is very important for determining the right transaction design and saving time.

FAS expects even more significant reduction of the number of considered transactions due to abolishing the Register of economic entities with over  35% share on the market of particular goods or  entities that have the dominant position on a particular market. Companies included in the Register were required to coordinate economic concentration transactions with FAS in advance depending on the scope of revenues (assets). Now Russian economic law on merger approval is fully based on objective qualitative criteria (thresholds).

Summing up, Anna Pozdnyakova pointed out that all merger control norms in Russia are included in the Federal Law “On Protection of Competition”, so the system is maximum transparent and understandable. Every businessman or company top executive can turn to this act and find out whether an intended transaction is subject to FAS control.