OREANDA-NEWS. October 26, 2010. The Federal Antimonopoly Service (FAS Russia) introduced the “third antimonopoly package” of laws for consideration by the Government of the Russian Federation, said the Head of FAS Russia Igor Artemyev in his video-address to the II annual conference “Antimonopoly Regulation in Russia”, organized by the “Vedomosti” newspaper and “Promoting Competition” Non-Commercial Partnership with support of the Federal Antimonopoly Service, reported the press-centre of FAS Russia.

“After the “second antimonopoly package” was adopted we did not want to change anything in the law and instead wanted to build-up enforcement practice. The Government of Russia, however, honoured FAS to be the first government body to start the procedures for joining the Organization for International Co-operation and Development. Last year we reported to the OECD Competition Committee about the state of competition in the Russian Federation and its development, and were given some comments and recommendations regarding desirable changes to our law. That’s why the “third antimonopoly package” of laws became necessary”, explained Igor Artemyev.

In particular, Igor Artemyev pointed out that list of per se prohibitions will be reduced and applicable only to horizontal agreements (cartels). Criminal liability will not be applicable to concerted actions and “vertical” agreements. The draft law also clarifies the concept of “coordination of economic activities”.

FAS Russia also proposes to clarify requirements to anticompetitive concerted actions. In particular, if the amendments are adopted, actions of the companies that publicly announce what kind of market behavior they are planning, will be recognized as concerted actions. The “third antimonopoly package” will also introduce the concept of minimum market share that must be controlled by the companies engaged in concerted actions (the total share - no less than 20% and the share of each individual participant – over 8%). “We expect that the number of cases initiated upon the signs of concerted actions will drop down sharply after the amendments are adopted”, is convinced Igor Artemyev.

According to the Head of FAS Russia, Article 6 of the Federal Law “On Protection of Competition” also will be changed. In particular, the priced formed at exchanges will not be considered as monopolistically high provided statutory rules of exchange trade are observed.

FAS Russia is improving the practice of applying a retrospective method to determine whether the price is monopolistically high. Such analysis will also use a global price indicator.

The Head of the antimonopoly authority stated that the “third antimonopoly package” of laws provides for applying fixed fines for such violations as abusing market dominance that have not restricted competition. This rule, however, will not be applicable to natural monopolies, which still will be punished by “turnover” fines. “This decision we made jointly with the Ministry of Economics in view of the established practice of behavior of natural monopolies”, stated Igor Artemyev.