FAS TOOK PART IN THE ANNUAL MEETING AT CCI FRANCE RUSSIE

FAS representatives and companies-members of the France-Russia Chamber of Trade and Industry discussed the latest changes in the antimonopoly law

On 5 December 2018, FAS representatives took part in the annual meeting with representatives of French companies in the France-Russia Chamber of Trade and Industry(CCI France Russie). The participants discussed the latest news in Russian antimonopoly law. For instance, the main items were control over foreign investments and public procurement, regulating medicine prices and trading activity, as well as unfair competition.

Developing digital economy requires reviewing approaches to antimonopoly regulation and enforcement. To improve business regulation and bring it to the new level, the Antimonopoly Service devised the “fifth antimonopoly package”, presented by Deputy Head of FAS Legal Department Igor Antonov. For example, it outlines new approaches to control over economic concentration and coordination of economic activity, the criteria for defining dominance, particularly, possessing infrastructure and network effects. In addition, the “fifth antimonopoly package” specifies new approaches to control over executing FAS orders and injunctions.

“In particular, the institution of trustee is suggested that is determined by the antimonopoly body to perform monitoring and facilitate order execution.  It is also suggested the FAS should be assigned the right to file lawsuits on forced permission to use the results of intellectual activity in Russia or event ban their circulation when FAS orders are not executed”, summed up the speaker.

Natalia Sharavskaya, Deputy Head of FAS Department for Control over Social Sphere and Trade, discussed the specifics of regulating prices for medicinal drugs. It concerned, in particular, the new registration rules and methods for calculating prices on the list of vital and essential drugs, adopted by No.1207 Decree of the Government of the Russian Federation of 8 October 2018. One of the novelties was a transition form the “costs” method of registering the ceiling ex-works prices for drugs from EEC to the “indicative” method. In addition, differentiation was introduced for the decreasing coefficients and the indexing level depending on the price level. The list of reference countries has changed: countries with consistently high prices and unstable systems of rice regulation are excluded from the list.

She emphasized: “New approaches are designed to make the system of price registration more transparent and objective in Russia. First of all, they eliminate discrimination of Russian manufacturers against the foreign ones, form unified prices for consumer drug package, and include support measures for the drugs of lower price segments and vaccines”.

Ekaterina Uryukina, Deputy Head of FAS Department for Control over Social Sphere and Trade, focused on antimonopoly regulation in retail trade.  She highlighted the most widespread violations of the Law on trade and the main problems between suppliers and retail chains. In particular, the speaker pointed out at the importance to develop self-regulation in trade to build up a constructive dialogue between all market participants.

“Re-launching the self-regulation system in retail trade is necessary”, stated Ekaterina Uryukina.

Deputy Head of FAS Department for Procurement Control, Maria Tomakh, discussed changed in public procurement regulation.

She clarified: “At the end of 2017 a large package of amendments to the Law on contractual system was adopted. It transfers all procurement to the electronic form. The initiative allowed customers to expand the geography of procurement participants, attract more participants, therefore, ensuring high competition in procurement, which, in its turn, will have a positive effect on reducing contract prices with maintaining the quality as well as budget saving”.

Vsevolod Savin, Deputy Head of the Legal Unit, FAS Department for Control over Foreign Investments, talked about control in this field. He looked at such aspects as the legal framework of foreign investments and exemptions, relations regulated by No. 57-FZ, and the role of FAS. The speaker outlined the mechanism for control over foreign investments and the categories of deals that require preapprovals, identified the most widespread deals by types of activities in the past 9 years and highlighted the most investment-attractive sectors.

“In 2015-2017, the fuel-and-energy complex remained the most investment-attractive sector, the total foreign investments, approved by the Government Commission, reached 22.2 billion $US”, stated Vsevolod Savin. “The second and the third places on attractiveness are seaports and airports in Russia, where the scope of investments increased considerably in the period in question”.

Regarding unfair competition in goods individualization, Yana Sklyarova, Deputy Head of FAS Department for Control over Advertising and Unfair Competition, stressed the key moments of the enforcement practice of the norms of the Law “On Protection of Competition” about fair competition.

“The new Chapter of the Law was introduced, first of all, to clarify the list of the forms of unfair competition in view of the established judicial and administrative practice and approximation of Russian law on unfair competition with European experience of applying antimonopoly law, and our efforts today show that the new norms work successfully”, said the speaker.

Yana Sklyarova discussed the main violations and the key enforcement problems that concern first of all the biggest category of cases – on the facts of confusing goods on the markets, illustrated antimonopoly cases with photo materials from the practices of FAS Central Office and regional Offices.