PRESIDENT OF RUSSIA SIGNED LAW DEVELOPED BY FAS AIMED AT IMPROVING ANTICARTEL ENFORCEMENT

The adopted amendments are aimed at suppressing anticompetitive agreements and coordinated actions of market participants

Due to amendments to the antimonopoly legislation, FAS Russia will be able to receive explanations from the audited companies and individuals that are relevant for the implementation of control functions. At the same time, the procedure for their provision and the powers of the antimonopoly authority are regulated.

Amendments to the Law on the Contract System (44-FZ) are also envisaged. The customer will be obliged to warn the procurement participant on the possibility of administrative or criminal prosecutions in case of violation of antimonopoly legislation regarding the prohibition of participation in agreements restricting competition and coordinated actions. The changes will take effect on January 1, 2024*.

In particular, the law regulates the procedure for submitting applications for concluding agreements or performing coordinated actions in order to release from administrative responsibility or mitigate it.  In addition, the provisions of the law provide for requirements for such an application, the timing of its submission and the procedure for registration. Previously, the provisions of the Law on Protection of Competition did not regulate such an order.

The Federal Law** will improve the mechanism for identifying cartels, increase the practice of collecting evidence in such cases, as well as prevent planned anticompetitive actions in socially significant commodity markets.

For reference:

* Federal Law of December 5, 2022 No. 500-FZ "On Amendments to the Federal Law "On Protection of Competition” and the Federal Law "On the Contract System in the Field of Procurement of Goods, Works, Services for State and Municipal Needs"

** The law comes into force from the date of its official publication, and the customer's obligation to include in the notice of purchase a warning about liability for violation of antimonopoly legislation – from January 1, 2024.