FAS presented approaches to the best market research practices at a workshop in Moscow

FAS educational workshop was organized jointly with OECD –Hungary Regional Competition Centre for representatives of 12 competition authorities of foreign countries

On 30 May 2017, representatives of the competition authorities from Germany, Hungary, Russia, Spain, Armenia, Kazakhstan, Moldova, Belarus, Azerbaijan, Kirgizia, Uzbekistan, Tajikistan and the Directorate General on Competition of the European Commission took part in the workshop on the main approaches and methods of market research organized by FAS and OECD – Hungary Regional Competition Centrein Moscow*.

“This year the workshop focused on economic analysis of markets – one of the most pressing issues in the work of competition authorities.  Integrated study gives in-depth understanding as to how sectors, industries and markets work, which is directly related to developing competition, and efficiency of the antimonopoly law and enforcement”, pointed out Deputy Head of FAS Andrey Tsyganov, opening the workshop.

After welcoming the participants, a senior OECD expert on competition, Sabine Zigelski, reviewed the powers of competition authorities in market analysis, described the situations when such studies can be required and their objectives.

Outlining the main approaches and methods of market studies in Russia, Andrey Tsyganov gave details of organizing the efforts on market analysis.  In particular, FAS can apply market analysis to consider statements, case materials on violations of the antimonopoly law;  as part of control over economic concentration on a market; under the scheduled work to analyze the state of competition on the markets and in other cases, for instance, studying competition on regulated markets. He clarified: “Market analysis in regulated sectors allows us to obtain up-to-date data on the state of competition and abandon government regulation of prices and tariffs if a market has moved from the natural monopoly to a competitive state.  Recently, for instance, we have abolished tariff regulation of Moscow aviation node because the market has become competitive”.

Deputy Head of FAS outlined legal regulation of market research process, focusing attention on the changes in the research procedure after the “forth antimonopoly package” had been adopted, possibility of the “fast-track” research procedure in some incidents, for example, defining only the product or geographic market boundaries. “Around 60% of FAS decisions based on market research findings are appealed at Court. At the same time, only 10% of such judicial cases are ruled not to the benefit of FAS. We have a very careful and scrutinized approach to such studies because very often it is definition of market boundaries and the market position of an economic entity that become the subject of Court examination. That is why for already many years the score in rulings is 9:1 in favour of FAS”, emphasized Andrey Tsyganov.