FAS ISSUED A WARNING TO ROSSOTRUDNICHESTVO

Actions of the Federal Agency on CIS Affairs, Russian Expatriates and International Humanitarian Cooperation (Rossotrudnichestvo) can lead to prevention, restriction and eliminating competition on the market of ancillary educational services

Earlier FAS received a complaint about actions of Rossotrudnichestvo, which restricted foreign national wishing to study in Russia in their choice of economic entities providing ancillary educational services. For instance, the Federal Agency indicated only the portal of the “Agency for Cooperation I Education” Ltd. (“ASO” Ltd.) on its official web-site as the only official site involved in selecting foreign nationals for studies in Russia. Thus, Rossotrudnichestvo created an impression that foreign nationals can file documents for obtaining Russian education only via “ASO” Ltd.

Under the current law, federal executive bodies, including Rossotrudnichestvo, are prohibited to exercise actions that can result in restricting competition. It concerns, in particular, restricting consumer choice in terms of economic entities offering particular services.

FAS found that actions of Rossotrudnichestvo have elements of violating Clause 5 Part 1 Article 15 of the Federal Law “On Protection of Competition”*, and issued a warning to the Federal Agency. For example, by 25 December 2019 Rossotrudnichestvo must not only stop informing people about the exclusive right of “ASO” Ltd. to select students for Russia but should also eliminate information from its official site with links to the company’s web-site. The Federal Agency should also exclude a possibility of “ASO” Ltd. giving permits for every mentioning of Rossotrudnichestvo in marketing and advertising campaigns carried out by the company. Rossotrudnichestvo should ensure a possibility of providing paid ancillary educational services for collecting applications for education in Russia at the expense of physical persons and legal entities on a competitive basis.

Background:

*Under Clause 5 Part 1 Article 15 of the Federal Law “On Protection of Competition”, federal executive bodies are prohibited to pass acts and (or) exercise actions (omissions) that lead or can lead to preventing, restricting, eliminating competition, except cases of passing acts and (or) exercising such actions (omissions) specified in the federal laws, particularly, restricting customers in their choice of economic entities that provide such goods is prohibited.