OREANDA-NEWS. May 28, 2009. Sergey Puzyrevsky, the Head of the Legal Department of the Federal Antimonopoly Service (FAS Russia), and his Deputy, Roman Pliev, made presentations at the seminar of the Arbitration Courts' judges that was organized by the Russian Academy of Administrative Service, of the President of the Russian Federation. Their presentation was titled "Changes of the Antimonopoly Legislation. The Second Antimonopoly Law Package", reported the press-centre of FAS Russia.

Sergey Puzyrevsky informed the judges about the amendments to the Federal Law "On Protection of Competition" and the Code of the Russian Federation on Administrative Violations, drafted by FAS Russia and approved by the State Duma in the first reading.

In particular, the Head of the FAS Russia's Legal Department pointed out that the new draft of the Law "On Protection of Competition" prohibits vertical agreements between economic entities if such agreements lead or can lead to fixing resale prices; restricting an economic entity, which is buying goods for reselling, in choosing counteragents from who the economic entity can buy the goods for reselling. Currently such agreements between manufacturers and their dealers are frequent.

FAS Russia proposes that the new draft Law establishes a 5-year period of limitation for the claims on unlawfully obtained profits. The existing law does not specify a period of limitation.

Sergey Puzyrevsky also informed the seminar participants that on 22nd May 2009, the State Duma of the Russian Federation would consider in the first reading the amendments to Article 178 of the Criminal Code of the Russian Federation. The new draft Law introduces criminal liability for preventing, restricting or eliminating competition by concluding competition-restricting agreements or engaging in competition-restricting concerted actions; repeated abusing of dominant position, by fixing and maintaining monopolistically high or low prices for the goods, unreasonably refusing or avoiding signing a contract, restricting market entry; if such actions resulted in inflicting heavy damages to individuals, organizations or the state, or deriving revenue on a large scale.

The draft law defines "large-scale revenue" as exceeding five million Rubles, and "especially large-scale revenue" - as exceeding 25 million Rubles. "Heavy damages" are defined as exceeding one million Rubles, and "especially heavy damages" - as exceeding three million Rubles. "Repeatedly abusing dominant position" means that within three years a person exercised more than two such actions for which the person can be held administratively liable.

Violators will face fines from 350,000 to 500,000 Rubles or in the amount of the salary or other income of the convicted offender during the period form one to two years, or up to three years imprisonment with disqualification (depriving the right to hold certain positions or be engaged in certain activities) for up to one year, or without disqualification.

The Head of the FAS Russia's Legal Department also talked about forthcoming amendments to the Code on Administrative Violations, according to which only the participant of competition-restrictive agreements or concerted actions that was the first to approach the antimonopoly authority would be able to take advantage of the leniency programme. Currently all participants of illegal agreements and concerted actions can enjoy the benefits of the leniency programme.

Under the amendments to the Law, failure to present requested information (data) to the antimonopoly authority within the period established by the antimonopoly authority, will be punishable by a fine: individuals - 1500-2500 Rubles, officials and executives - 10000-15000 Rubles, and legal entities - 300,000-500,000 Rubles. The antimonopoly authority needs to obtain the information, requested from economic entities, within the designated period in order to investigate violations of the antimonopoly legislation or process transaction petitions.

Also FAS Russia proposes to reduce turnover fines for "mono-companies" (companies operating only in one market). Currently turnover fines for participation on competition-restricting agreements or concerted action and for abusing dominant position are from 1 to 15% of the company's turnover in the preceding year on the market where the violation was committed.