ANDREY TSARIKOVSKIY: RUSSIA SHOULD DEVELOP INSTINCTIVE REFLEX AGAINST CARTELS

The XI Conference – “Antimonopoly Regulation in Russia” focused on tightening liability for cartels, changes in regulation and the practice of countering such economic crimes in general

On 25 October 2019, the Annual Conference included a foresight session – “Cartels-2020”. The FAS Russia was represented by Stats-Secretary, Deputy Head of FAS Andrey Tsarikovskiy and Head of FAS Anti-Cartel Department, Andrey Tenishev.

Andrey Tsarikovskiy emphasized that unfortunately the society does not have the right opinion about cartels as gross economic offences that should generate unequivocally negative attitude.

He pointed out that “in Russia we should develop an instinctive antagonistic reflex against cartels” and expressed hope that consistent explanatory work will form an adequate public opinion.

Deputy Head of FAS emphasized a “brand new” quality of modern cartels: “Cartels are the reflection of the society. The modern society has become digital and so have the cartels”.

“Sometimes we are criticized that there are a lot of cases but most of them are bid-ridding cartels: 85% of the total anticompetitive collusions in 2018 and 92% in H1 2019”, continued Andrey Tenishev.

He underlined that “in many jurisdictions bid-ridding cartels are a kind of fraud, in Russia they fall under the antimonopoly law but the essence is the same. 30% GDP is Russia is allocated through the procurement system. Thus, prosecuting bid-ridding cartels, we protect competition on the markets”.

Andrey Tenishev informed that in 2018 Courts reversed 3% decisions on anticompetitive cases. He concluded that FAS enforcement and judicial practice in this field is established.

Head of FAS Anti-Cartel Department, Andrey Tenishev supported the point made by Andrey Tsarikovskiy about lack of proper moral condemnation of cartels by the society.

“We should support respect of national values and preventative threat of criminal liability is necessary to this end”, summed up Andrey Tenishev.

The discussion participants also focused on presumption in cartel cases, damage recovery and the applicability limit for Article 169 of the Civil Code of the Russian Federation in cartel cases and interaction between business and FAS to counter cartels.

The XI Conference – “Antimonopoly Regulation in Russia” took place in Moscow on 25 October. The event is organized by the “Vedomosti” newspaper and the Antimonopoly Experts Association with support of the Federal Antimonopoly Service.