ICAP JUBILEE SESSION FOCUSED ON THE MAJOR ISSUES OF COMPETITION DEVELOPMENT
The 50th session of the Intergovernmental Council on Antimonopoly Policy (ICAP) during the VI BRICS Competition Conference on 17 September 2019 discussed the most significant antimonopoly practices
Representatives of the antimonopoly bodies from Armenia, Belarus, Kazakhstan, Kirgizia, Moldova, Tajikistan and Uzbekistan took part in the event.
Opening the meeting, ICAP Chairman, Minister for Antimonopoly Regulation and Trade of the Republic of Belarus (MART), Vladimir Koltovich, said in the welcoming address the words of gratitude doe collaboration in solving common issues and specially thanked the Federal Antimonopoly Service.
“ICAP has been long playing an important role in developing and implementing antimonopoly practices that proved to be efficient in advancing economies and fair competition in the world”, pointed out Vladimir Koltovich.
Representative of the participating countries described the main measures pursued by MART since the last, the 49th session of ICAP. Regarding improvements of the regulatory framework, Vladimir Koltovich informed that new legislation had been introduced in Belarus over a year ago:
“The enforcement practice in 2018 – 2019 demonstrated efficiency and demand for the novelties, particularly warnings and admonitions - new tools for Belarus: in 2018 – 2019 MART issued 46 warnings on 22 cases. 14 cases were terminated due to execution of warnings.”
ICAP members reported on the most significant events in the antimonopoly policy across the CIS.
Deputy Head of FAS Anatoly Golomolzin reported the results of the work of the Headquarters in the course of which the participants discussed the state of competition on the markets of medical products, cross-border e-commerce and passenger air transportation market.
“We focused on three items: the Report “On the state of competition on the markets of medical products of the CIS member-states”, and two reviews – on the market of commuter and intercity road transportation of passengers in the CIS member-states and on developing the e-commerce market”. The reviews were drafted to expose problematic markets that require detailed consideration and proposals on improvement”, explained the Chairman ofthe Headquarters for Joint Antimonopoly Investigations in the CIS markets, Deputy Head of FAS Anatoly Golomolzin.
Regarding the major events in the practice of the CIS antimonopoly bodies, Anatoly Golomolzin highlighted FAS efforts towards executing No. 618 Order of the President of the Russian Federation “On the main directions of the state policy for competition development” of 21 December 2017. The Order recognized the significance of the work on exposing and suppressing violations on digital markets, particularly, abolishing roaming and suppressing violations committed by transnational corporations, improving tariff policy, developing exchange trade. All these measures were implemented in practice and spelt out in the annual FAS report.
Deputy Head of FAS pointed out:
Roaming in the Russian Federation was abolished under the frame of investigating antimonopoly cases. Tariffs when travelling across Russia have become as accessible as in the home regions – they decreased from 2.5 to 10 times. Consumers can save at least 6 billion RUB annually. Not only prices decreased multiply through antimonopoly cases but the traffic increased proportionately, and as a result telecommunications operators won rather than lost. These efforts are praised highly in the world. The International Competition Network and the World Bank awarded FAS the 1st place on the annual contest among the antimonopoly authorities of the world”.
“Developing exchange trade is an important achievement. Over 400 exchange indicators are quoted on a regular basis including oil products, gas, coal, fertilizers, grain, sugar, derivatives. The turnover on the markets of physical exchange goods exceeds 1 trillion RUB, on the market of derivatives it is more than 20 trillion RUB annually. Exchange trade has become a tool of sustainable economic growth through increased efficiency of commodities and financial markets. Pricing transparency is increasing; violations of the antimonopoly law are prevented. Exchange quotations improve tax and customs law enforcement, creates the basis to determine economically justifies costs of regulated companies, and help adequately calculate budgetary spending”.
He added that "ICAP supported FAS proposals to include exchange trade on national and international market of physical goods and derivatives in the list of areas recommended for joint work”.
Deputy Head of FAS also informed that FAS Presidium named the best achievement of the Antimonopoly Service in tariff policy.
“It concerns FAS adopting a new method for cap pricing in telecommunications to execute a decision of the RF Government in approval with other bodies. The new method allows determining parameters for indexing telecommunications tariffs depending on general economic conditions and corporate actions to enhance performance. It also enables companies to react flexibly to the changing demand within prescribed limits on the regulated tariffs basket”, underlined Anatoly Golomolzin.
He described the practice of regulatory gas contracts between FAS, regional authorities and gas suppliers. He emphasized that these were breakthrough efforts to achieve the goals of efficient gasification.
Discussing exterritoriality of antimonopoly enforcement, Deputy Head of FAS highlighted the best practices of the antimonopoly authority. He outlined control over large mergers and acquisitions, including Uber and Yandex, Bayer and Monsanto mergers. Consideration of these deals required coordination with other antimonopoly authorities, making big decisions related to access to digital platforms and technologies. Cases against Microsoft, Google, Apple helped protect the fair competition conditions on dynamically growing digital markets, not only at the national but also at global levels.
“Practical collaboration with foreign antimonopoly authorities is an important tool in exterritorial enforcement. “New level” agreements, formalizing such tools, enable efficient collaboration in enforcement. FAS has an impressive agreement portfolio (over 70 documents including 7 intergovernmental ones), that with new agreements added annually”, commentedAnatoly Golomolzin.
Other speakers included Head of FAS Department for International Economic Cooperation, Lesya Davydova, and Head of FAS Department for Regional Tariff Regulation, Yulia Yudina.
At the event, a Memorandum was signed on cooperation in the field of competition between the State Agency for Antimonopoly Regulation at the Government of the Kyrgyzia Republic and the Competition Council of the Republic of Moldova.
Finally, participants considered the themes and materials offered to elaboration and possible submission to the Council of the Heads of States, the Council of the Heads of Governments, and CIS Economic Council, and approved the agenda of the next ICAP session.
Background:
The Intergovernmental Council on Antimonopoly Policy (ICAP)was formed in December 1993. The Council coordinated activities of the member-states of the Commonwealth of Independent States on antimonopoly regulation, facilitates conditions for developing fair competition and harmonizing competition law in the CIS.