FAS: IN A FIGHT AGAINST VIOLATIONS OF ANTIMONOPOLY LEGISLATION, IT IS NECESSARY TO FOCUS ON THEIR PREVENTION
It was stated by Andrey Tsyganov, Deputy Head of FAS Russia, at the 8th BRICS Competition Conference in New Delhi, India
As part of the event, a session was held on the role of soft law in building pro-competitive market environment. The moderator of the session was Lesya Davydova, Head of the Department of International Economic Cooperation of FAS Russia.
She noted that to date most modern legal regimes increasingly apply a hybrid system of competition law, which combines both strict regulatory measures and soft law tools. The purpose of such tools is to prevent anticompetitive violations and reduce their number. In this regard, in order to increase the level of self-regulation of industries, their promotion is actively supported by the BRICS competition agencies.
Soft law is also an important component of the antimonopoly regulation system in Russia. Andrey Tsyganov told about it and outlined the key methods of competition protection and suppression of violations. One of the key ones is an admonition that is sent to officials in the event that their behavior and public statements may lead to a violation of the law. If signs of a violation are detected, the regulator may issue a warning. The document gives the company a choice to voluntarily comply with it and stop anticompetitive actions or to continue and be subject to sanctions.
Antimonopoly compliance is also the most effective way to prevent offences. It increases the efficiency of internal processes of organizations and reduces the number of violations due to self-control.
Besides, FAS Russia provides official guidelines on the application of antimonopoly legislation and holds meetings with representatives of the business community, manufacturers, public organizations, consumers. It increases their awareness of the regulator's activities and the degree of self-control.
BRICS competition agencies also have extensive experience in competition advocacy and the application of soft law norms.
Representative of the Competition Commission of India, Mr. Anil Agrawal, said that the Competition Commission of India regularly informs the public about its functions and various aspects of competition law. In addition, the authority conducts seminars and conferences, as well as prepares recommendations for business. In particular, in August 2023, the Commission published draft Regulations on voluntary Obligations of Companies and Dispute Settlement. Such a mechanism suggests that an organization that is being investigated for an alleged violation of antimonopoly legislation should assume obligations to the regulator.
Administrative Council for Economic Defense of Brazil is also engaged in the preparation of guidelines and various recommendations. Commissioner of the Council, Ricardo Medeiros de Castro, noted as examples the Guidelines on Unscheduled Inspections (2017), the Guidelines on Remedies (2018), the Guidelines on Combating Cartels in Public Procurement (2019) and others.
Zhou Zhigao, Deputy Director of the Competition Policy Coordination Department of the State Administration for Market Regulation of the People's Republic of China, spoke about the balance of soft law and strict regulation. In February 2021, the Antimonopoly Authority of the People's Republic of China published Methodological Recommendations for the platform economy. The document aims at preventing and suppressing monopolistic practices in such an economy and protecting market competition.
Competition Commission of South Africa also holds numerous events together with representatives of business and the scientific community. In addition, the agency is engaged in conducting in-depth studies of socially significant markets and preparing relevant reports. Competition Commission of South Africa received these powers due to recent amendments to the competition law. As noted Hardin Ratshisusu, Deputy Head of the Commission, in August 2023, the regulator published a study on competition issues in digital markets. At the moment, a similar study is underway on the market of fresh vegetables. Based on the results of such work, recommendations will be prepared for market participants that will reduce the number of violations of antimonopoly legislation.
At the end of the session, the participants noted the importance of combining strict control of antimonopoly regulators and the use of soft law tools. This balance contributes to the creation of the most favorable competitive environment.