THE PRESIDENT OF RUSSIA SIGNED THE "FIFTH ANTIMONOPOLY PACKAGE" DEVELOPED BY FAS

The law is aimed at suppression of abuse of a dominant position by the owners of digital platforms

Antimonopoly requirements will not hinder the work of companies, but in the case of their dominance will prohibit discrimination of customers, monopolistically high price for the services provided. The law will apply only to the dominant digital platforms in cases where their unfair behavior is revealed. For example, unjustified denial of access to a digital platform, imposition of unfavorable conditions for consumers, creation of discriminatory conditions for entrepreneurs selling goods on the marketplace.

The law introduces the concept of "network effect" in the commodity market. It is a property of the commodity market, in which the consumer value of a digital platform vary depending on the change in the number of sellers and buyers making transactions through it. According to the document, the criteria for a dominant position in the market for online trade aggregators using the "network effect" are established: revenue for the last calendar year exceeds 2 billion rubles, the share of transactions in a certain commodity market exceeds 35 %.

It also establishes a new condition for antimonopoly control over transactions of economic concentration in commodity markets. Now, transactions which price exceeds 7 billion rubles will be coordinated with FAS Russia.

The law will increase the objectivity of decisions taken when approving transactions of economic concentration by FAS Russia. Thus, in-person consideration of petitions for transactions with the participation of interested parties is introduced. For applicants for transactions, the right is established to declare voluntary obligations to ensure competition in the market (it is already being implemented in practice today, for example, obligations to ensure the maximum level of margins in retail chains). In addition, the legal status of an expert is determined when considering cases of violation of antimonopoly legislation and considering transactions of economic concentration.

According to FAS Russia, the "fifth antimonopoly package" will have a preventive effect on aggregators and marketplaces, creating barriers to abuse in digital markets.

Besides, the law will improve the quality of antimonopoly regulation of the digital economy and ensure consumer protection from abuse of market power by digital platforms.

The changes will take effect on September 1, 2023.