FAS HAS ADJUSTED THE PRINCIPLES OF ECONOMIC ANALYSIS OF PRICING PRACTICES

In the current conditions, the dominant economic entities must first take into account the interests of the domestic consumers when establishing their pricing policies. Maxim Shaskolsky, the Head of the Federal Antimonopoly Service of the Russian Federation drew attention to it during his speech in the State Duma of the Russian Federation. A number of investigations into excessive prices conducted by FAS in several product markets has increased. In this regard, the Federal Antimonopoly Service has changed its approach to the economic analysis of pricing practices for Russian goods. Now it gives priority to the balance of supply and demand in the domestic market, export quotations cannot be accepted as the main argument.

In the current economic conditions the pricing practices of the dominant economic entities, taking into account the indicators that have developed in foreign markets, do not take into account the economic opportunities of the domestic consumer. This may lead to the consequences specified in Part 1 of Article 10 of the Law on Protection of Competition.

The FAS Russia reminds businesses of the need to comply with antimonopoly law both in the markets in which the companies themselves operate and in related product markets. Domestic producers need first to assess the situation in the domestic market of the Russian Federation.

For reference:

The principles of Economic Analysis of Pricing Practices were approved by the Presidium of the FAS Russia in September 2014. They establish common approaches to the analysis of the pricing policy of dominant economic entities for their compliance with the requirements of the Law on Protection of Competition.

In accordance with Part 1 of Article 10 of the Law on Protection of Competition, actions (inaction) of a dominant economic entity are prohibited, the result of which is or may be the prevention, restriction, elimination of competition and (or) infringement of the interests of other persons (economic entities) in the field of entrepreneurial activity or an indefinite circle of consumers.