FAS: INTERNATIONAL COOPERATION IS AN IMPORTANT ELEMENT IN COUNTERING CROSS-BORDER VIOLATIONS

It was stated by Andrey Tsyganov, Deputy Head of FAS Russia, at the IV Eurasian Forum on Cartels

The issues of cross-border cartels are caused by the globalization of the economy and, as a result, by the increase in the number of unfair practices of transnational corporations. Such violations are characterized by their duration, affect the most important socially significant sectors of the economy and damage at once the economies of several countries.

Thus, in order to successfully investigate them, it is necessary to strengthen international cooperation, coordinate law enforcement and optimize resources.

Besides, it is important to improve the system of combating cross-border cartels. In this regard, work is currently underway to create universal standards of international cooperation in their investigation.

There are also other methods to improve the effectiveness of the suppression of this type of violations. For example, the development of cooperation with antimonopoly authorities of foreign countries and the availability of the necessary legal framework that allows such cooperation. Such documents include various intergovernmental agreements, cooperation programs and memoranda of cooperation.

In addition, a leniency program for the parties to the agreement is recognized worldwide as a one of the key methods of identifying cartels. It is one of the most effective tools for obtaining information and collecting evidence of the existence of the cartel.

Foreign colleagues are also introducing such a program into national legislation.

In Brazil, the leniency program has been in effect since 2003. Since its introduction, 49 investigations have been conducted and 109 agreements signed with cartel members. It was told by the Head of the Antimonopoly Supervision Department of the Administrative Council for Economic Protection of Brazil (CADE) Felipe Leitao Valadares Rocket. He noted that the total fine for these years for cartel agreements amounted to $ 750 million.

The specificity of cross-border cartels is that they affect socially significant sectors of the economy. Chairman of the Egyptian Competition Authority, Mahmoud Momtaz, said that the regulator had detected violations in the markets related to food supplies. He also noted the importance of international cooperation in order to create new tools to prevent anti-competitive practices.

Nina Yemelyanova, Deputy Minister of Antimonopoly Regulation and Trade of the Republic of Belarus, also spoke about national methods of investigating cross-border cartels. She noted that the key goal of the Ministry in this area is the exchange of experience and the development of positive practices to combat such violations. The speaker also shared the experience of the Belarusian antimonopoly authority in the anti-cartel sphere. In 2021, the Ministry revealed the largest by the number of participants cartel in the market of plant protection products. The total amount of the fine against the offending companies amounted to more than 133 million rubles.

The importance of international cooperation as a tool to combat cross-border cartels was also noted by representative of the State Administration for Market Regulation of China (SAMR) Wang Shaokan. The speaker said that in the context of globalization and digitalization, it is necessary to strengthen antimonopoly regulation and improve the rules of competition policy. For this purpose, the Chinese agency studies the experience of foreign colleagues and implements it at the national level.

Maanda Lambani, Chief Investigator of the Anti-Cartel Department of the Competition Commission of South Africa, spoke about the importance of the principle of extraterritoriality in the investigation of cross-border cartels. This principle is applied to anticompetitive agreements concluded in foreign countries, if such agreements have a negative impact on the state of competition in the markets of South Africa. The speaker also shared the experience of the Competition Commission of South Africa. Earlier, the competition authority of South Africa revealed a cross-border cartel in the road transport market with regard to 62 companies.

At the end of the event, the participants concluded that it was necessary to maintain a constant dialogue, exchange opinions and coordinate the enforcement of antimonopoly regulators of the EAEU countries, BRICS and other associations. It will allow improving the system of combating cross-border cartels and make optimal decisions.