ANDREY TSYGANOV: MERGER CONTROL PRESUMES DEEP ANALYSIS

Deputy Head of FAS explained the difference between static and dynamic approaches to evaluating the state of competition with an example of Bayer / Monsanto merger, speaking at an event in Paris (France)

On 6 December 2019, OECD Global Forum on Competition has a session on merger control on dynamic markets. The Russian delegation at the event was represented by Deputy Head of FAS Andrey Tsyganov and Head of FAS Department for International Economic Cooperation, Lesya Davydova.

Evaluation of the state of competition in merger consideration was in the focus of the agenda.

“If we agreed with the “arithmetic approach” proposed by the merger parties that assumes adding up the companies’ shares, we would be forced to approve this gigantic global merger without setting any conditions because the aggregate shares of the integrated company on the relevant markets of seeds and plant protection agents did not exceed the threshold values set by the antimonopoly authority”, said Andrey Tsyganov. “The FAS position was that the main assets of the merging companies are new technologies, big data, digital farming platforms, end-to-end agro-technological solutions, and they certainly have the leading positions on these markets”.

“Therefore, FAS order has conduct conditions, including establishing a mechanism for transfer of technologies possessed by the integrated company to its Russian competitors, as well as access to databases and platforms.

The decision of Russian antimonopoly body was based on in-depth academic studies of competition development on agro-food BRICS markets. Also, this joint decision enabled BRICS competition authorities to collaborate efficiently when considering the merger and work out conduct requirements to the merger participants”, concluded Deputy Head of FAS.