STATE DUMA ADOPTED IN THE FIRST READING FAS DRAFT LAW ON STRENGTHENING RESPONSIBILITY FOR THE USE OF DIGITAL ALGORITHMS IN CARTELS

The document is the part of the "fifth antimonopoly package"

The draft law* proposes to recognize the use of digital algorithms in cartel agreements as an aggravating circumstance when bringing to administrative responsibility.

The need for innovation is associated with increasing number of offences using such algorithms when concluding and implementing anticompetitive agreements.

In addition, it is planned to introduce a doubled administrative fine for repeated failure to comply with the antimonopoly authority's remedies. We are talking about cases when the company violated the law has already been brought to administrative responsibility for ignoring it and not stopping the violation within the newly established time limits.

Currently the maximum amount of an administrative fine for non-compliance with the instructions of the authority for legal entities is 500 thousand rubles **. This value does not deter the illegal behavior of violators, since the income from monopolistic activities significantly exceeds the amount of fines.

The adoption of the draft will ensure the creation of effective mechanisms of administrative responsibility for violations related to monopolistic activity in digital commodity markets.

Earlier, the State Duma adopted in the first reading a draft law on tightening responsibility for cartels at auctions.

For reference:

* Draft Federal Law No. 160278-8 "On Amendments to the Code of Administrative Offences of the Russian Federation (on Clarifying Administrative Responsibility for Violations Related to Monopolistic Activity Practice in Digital Commodity Markets)"

** Part 2.1-2.3 of Article 19.5 of the Code of Administrative Offences of the Russian Federation