SERGEY PUZYREVSKIY: DIGITAL ECONOMY SHOULD BE FORMED ON THE PRINCIPLES OF FAIR COMPETITION
The relevant legislative initiatives are already on the way
Speaking at the “III Siberian Legal readings” International Conference in Tyumen, Deputy Head of FAS Sergey Puzyrevskiy stated that antimonopoly regulation must focus on digital platforms since they can deter competition development and lead to monopolization of various sectors. It is also necessary to react to the challenges of globalization and strengthening market power that is now tends to be based on big data rather than product output.
“A lot of services are offered, as it seems to us, for free in terms of money, but at the same time plenty of importation is collected from us regarding our requests and preferences. Data collected this way are monetized on particular markets as they are used to shape the prices of the goods that are then offered for purchase to particular buyers”, emphasized Deputy Head of FAS.
At the current stage of economic development, those producers have competitive advantages who use services on digital platform to sell their goods in comparison with producers that continue searching or increasing their sales volume based on only traditional, non-digital methods of competition and attracting consumer attention, such as outdoor advertising, TV ads, etc.
“A holder of information – a digital platform owner may not occupy a share of market for producing tangible goods производства, but this holder can control practically any tangible market”, pointed out Sergey Puzyrevskiy.
The latest FAS investigations indicate that participants of anticompetitive agreements actively use new possibilities for illegal operations: big data and computational algorithms.
To solve the current negative issues, the Antimonopoly Service wants to make amendments to the existing law in order to adopt it to the rapidly developing digital economy and eliminate adverse effects for the state of competition on different markets: the “fifth antimonopoly package”.
First, the package defines new approaches to establishing the dominance position in view f the current market phenomena. Second, a concept of “network effects” is introduced and their significance is determined.
Liability for concluding and pursing anticompetitive agreements and unlawful coordination of economic activity using software is tightened.
“The antimonopoly law must be ready to solve current problems timely and efficiently. To this purpose, the dictates of the new time and the law must be synchronized”, concluded Sergey Puzyrevskiy.