REGULATORS AND THE LAW ENFORCEMENT BODIES HAVE A COMMON OBJECTIVE OF COMBATTING CARTELS

FAS held the first inter-departmental training workshops on countering cartels. Joint efforts are undertaken towards implementing 2019-2023 inter-departmental programme of measures aimed at exposing cartels and other competition-restrictive agreements.

On 26-27 November 2019, FAS Centre for Education and Methodology held the first training workshops with the law enforcement bodies on exposing and suppressing cartels. The event was attended by representatives of FAS the Central and regional Offices of FAS, the Prosecutor’s Office, the Ministry of Interior, Rosfinmonitoring [the Federal Financial Monitoring Service], the Federal Security Service and the “For Fair Procurement Project” of the United People’s Front.

Head of FAS Anti-Cartel Department Andrey Tenishev informed the participants about the work of the antimonopoly authority: “We possess rather serious powers in the field of control over cartel and anticompetitive agreements, but FAS can held legal entities only administratively liable. We face a situation when companies can easily pay multi-million fines and then include them as their costs and continue expanding cartel operations. Such recidivisms can be suppressed only by criminal punishment”.

He continued that “criminal cases appeared only after the President singed a List of orders for establishing efficient uniform anti-cartel practice in 2017 which became a serious deterrent factor for many violators”.

“Our work is influencing from different points of view upon the same problem. We have a common goal, working in which our efforts should be combined. In addition to serious criminal sanctions we will impose heavy fines upon violators, it is pretty sensible for companies, and in addition to fines the threat of criminal liability it will generate a strong preventative effect”, pointed out Andrey Tenishev.

Deputy Head of the Budgetary Department Rosfinmonitoring, Igor Gureev, who took part in the event, emphasized a high level of cooperation between Rosfinmonitoring and FAS: “We have been able to build up efficient cooperation, directed, first of all, to resolve the key issue - safeguarding budgetary funds”.

Valery Alexeev, leader of the “For Fair Procurement Project” of the United People’s Front said that meetings of social activists and representatives of regulators and the law enforcement bodies are essential for constructing efficient collaboration.

He informed that “activists of the “For Fair Procurement Project” of the United People’s Front expose elements of anticompetitive bid-rigging agreements. We pass all information to FAS. 72 antimonopoly cases have already been opened based on the investigation outcomes. We continue collaboration, especially on the areas specified in the “May Order” of the President of Russia, the leader of the United People’s Front Vladimir Putin. Bid-rigging anticompetitive agreements in such fields as healthcare, construction, roads have adverse effects upon the timely and top-quality execution of the Order, and achieving the goals set by the national leaders. Also, the quality of people’s life depends on it; which means that countering cartels and collusions is trending and sought after as never before”.

Deputy Head of FAS Anti-Cartel Department Anton Teslenko highlighted that all competitive bidding under the No. 44-FZ has already been moved to e-trading sites, which is “a completely different environment, where specific traces are left and we have already learned how to register them”.

He mentioned that “training how signs of a bid-rigging cartel, from collusions between bidders to collusion with the government customer, can be exposed working on one’s own computer, will be very interesting for police case officers or prosecution officers”.

Anton Teslenko reminded that soon № 223-FZ Federal Law and property auctions also will “reach” e-sites, and now it is necessary to learn how to discern and register e-collusions.

He described how digital products are used to optimize such operations, the Big Digital Cat and other screening services and highlighted controversial aspects of work in the digital space, particularly, access of the authorities to e-communications of economic entities.

Deputy Head of FAS Anti-Cartel Department, Pavel Remisyuk shared the practice of exposing cartels and other anticompetitive agreements.

He summed up that “this event is not simply a set of lectures but a high-quality dialogue between all bodies that face a common goal – combat cartels. Undoubtedly, this format of work is the most efficient”.