FAS DRAFTS EXPLANATIONS ON WIDESPREAD VIOLATIONS COMMITTED BY THE AUTHORITIES

Deputy Head of FAS Legal Department, Oksana Kuznetsova informed about it at antimonopoly compliance workshop for representatives of federal executive bodies

“The law on competition protection set several bans against acts or actions (omissions) by the authorities that lead or can lead to preventing, restricting or eliminating competition on the markets. It should be stated that even a possibility of such adverse consequences can be considered as violations of the antimonopoly law”, emphasized Deputy Head of FAS Legal Department.

According to Oksana Kuznetsova, most violations concern creating discriminatory conditions for particular companies, or, on the contrary, advantages for some of them, administrative market entry barriers, instructions to acquire goods from particular sellers, etc.

“Another type of violations is transferring functions of the authorities to economic entities. In some cases, such violations are committed with the purpose to avoid the Law on competition. In this case, the functions of the ordering parties are transferred to economic entities, for instance, unitary enterprises that certainly is not conducive to competition development and saving budgetary funds”, pointed outOksana Kuznetsova.

The workshop participants also analyzed examples of some other types of violations of the antimonopoly law by the authorities and local self-government bodies, in particular, concluding anticompetitive agreements, coordinating operations of bidders by ordering parties, etc., as well as various aspects of holding liable for such violations. Liability for restricting competition by the authorities is specifies in Article 14.9 of the Code on Administrative Violations: an administrative fine upon officials – from 15,000 RUB to 50,000 RUB as well as disqualification for up to three years.

Concluding prohibited agreements by the authorities or exercising concerted actions are punished by fines upon officials - from 20,000 RUB to 50,000 RUB or disqualification for up to three years.

Oksana Kuznetsova also announced that FAS is drafting Explanations for the authorities on typical violations of the antimonopoly law to support prevention of such violations in decision-making.

“We believe that the Explanations should become a handbook for each Head of the authorities or local self-government bodies, be a helper in decision-making”, underlinedOksana Kuznetsova.