RUSSIA HAS A CONSIDERABLE POTENTIAL FOR INCREASING COMPETITIVENESS OF RUSSIAN SOFTWARE

The Economic Policy Committee of the Federation Council at the Federal Assembly of the Russian Federation discussed issues related to Russian software and hardware

On 18 February 2020, Deputy Head of FAS Anatoly Golomolzin made a report at the Round Table on the measures towards stimulating development, production and implementation of Russian digital products.

“With changes in the current conditions, the situation on the markets of digital technologies development has also changed. New large players are emerging, with operations based on digital platforms, big data, machine algorithms, direct marketing, and diverse revenue monetization. These means not only create additional opportunities for developing various tangible activity areas, but also determine possibilities for establishing and reinforcing market power of digital giants that leads to restricted competition and infringed interests of their counteragents, including the population”, said the speaker.

In this context, he emphasized the significance of the work undertaken under the frame of the Orders of the President of Russia “On the strategy for developing information society” and “On the main directions of the state competition policy”. The orders, in particular, highlight work in two directions. 

The first concerns improvements in the enforcement practice and law on competition protection, designed to suppress and prevent antimonopoly violations by large companies on digital markets, including transnational corporations. The second direction relates to supporting and developing Russian software.

“A series of cases against the largest world companies have taken place recently. To reinforce this practice and create conditions for enhancing enforcement efficiency in the future, the fifth antimonopoly package is being discussed, it gives the specifics of applying the antimonopoly law on digital markets”, pointed out Anatoly Golomolzin.

He underlined that “Russia has accumulated a considerable potential for increasing competitiveness of Russian software on both national markets and under international economic relations”.

“A number of Road Maps are adopted by the Government to execute Presidential Orders and develop competition in various sectors, including telecommunications and innovative technologies. The Road Maps, in particular, outline measures to preinstall Russian software on sophisticated technical devices (smartphones, gadgets, computers, smart TV)”, explained Anatoly Golomolzin.

He added that the “Road Maps presumed adopting a federal law in this field. The law was adopted at the end of December 2019 and now efforts are being undertaken to draft an order describing the mechanisms and procedures for applying this act”.  

Deputy Head of FAS clarified that the concept had undergone broad discussions, based on which FAS had drafted a Governmental Decree.

“Now a draft Decree is under public discussions. We expect that the document can be submitted to the Government of the Russian Federation no later than March-April. A relevant procedure shall come into effect before 1 July 2020”, said Anatoly Golomolzin.

Deputy Head of FAS mentioned that the Road Map allows removing applications that do not affect safety aspects and functional integrity of sophisticated technical devices and also create more favourable conditions and the right of choice for consumers.

“Under the modern conditions, possessing intellectual property, particularly, pools of intellectual property rights, is very important for establishing market power.  This feature of digital markets once again requires to remove exemptions from the antimonopoly law with regard to the  activities related to turnover of goods with use of intellectual property rights”, continued Anatoly Golomolzin.

“No jurisdiction in the world has such exemptions in the antimonopoly law. Here Russia loses away to other jurisdictions in the global competition because non-competitive conditions are created a priori on Russian markets. All countries in the world apply the antimonopoly norms to intellectual property, there are simply some specifics of its enforcement. Therefore, the antimonopoly law should be improved in this part and relevant legislative initiatives must be discussed and adopted”, concluded Anatoly Golomolzin.

The participants of the Round Table emphasized the significance of openness and publicity procedures for discussing regulatory acts.  They stressed the need for join consideration of questions related not only to software but also hardware solutions and technical devices. The participants believe that optimal development in the digital sphere is inseparably connected to improving the law on public procurement.