OREANDA-NEWS. November 12, 2013. The Federal Antimonopoly Service (FAS Russia) organized a Round Table in “Impact of the Amendments to the Antimonopoly Law upon Development of Small and Medium Business in Russia”, with participation of the Head of FAS, Igor Artemiev, and the President of “OPORA RUSSIA”, Alexander Brechalov.

The parties discussed amendments to the Federal Law “On Protection of Competition” and the impact of changes to the antimonopoly law upon development of small and medium business in Russia.

First of all, the Head of FAS, Igor Artemiev thanked “OPORA Russia” for cooperation: “The basis for success in building relations between business and the authorities – efficient feedback with civil society and government agencies. At this stage, it is necessary to analyze the existing practice of cooperation between small and medium business and the Antimonopoly Service, particularly, to expose the problems that must be resolved in the near future”.

Discussing the main amendments to the Federal Law “On Protection of Competition”, the Head of FAS pointed out that many proposals put forward by business were taken into account to improve the business climate. He reported that the administrative burden upon business were reducing. Preliminary approvals of creating all state and municipal unitary enterprises are introduced and the norms for recognizing monopolistic status regardless of the market share are abolished.

The amendments specify in more detail the procedures for antimonopoly enforcement with regard to actions and agreements for using exclusive intellectual property rights. Igor Artemiev explained the essence of the amendments: “The antimonopoly rules are applied only to goods circulation and not to intellectual property items”.

The Head of FAS evaluated the first results of the work of the portal “For fair procurement” - zachestnyezakupki.onf.ru, presented by Alexander Brechalov. For instance, controversial public procurement for the sum over 6 billion RUB were abolished. Alexander Brechalov emphasized that the portal “For fair procurement” is not “just a web-site for the sake of a web-site”: “The portal developers want to make public procurement even more public. By the end of the year we plan to organize training webinars on No. 44- FZ, as it appears that not everybody in the provinces understands all nuances of the Law. The portal “For fair procurement” is designed to quality results and it is not politically charged”.

“We welcome the work of the portal and propose to exchange statistical data on a regular basis. We would also ask to pay special attention to barriers in procurement. To take part in procurement, bidders are often asked to present documents that simply do not exist by definition. It is essential to make provisions for monitoring” such violations”, pointed out Igor Artemiev.

The institution of warnings and admonitions will be expanded to other forms of abusing market dominance, anticompetitive actions by the authorities and unfair competition, except intellectual property.

It will enable business to eliminate violations without imposing fines immediately upon receiving warnings from FAS. To eliminate violations FAS planned to allow 30 days, but “OPORA RUSSIA” asked to prolong the period for warning execution to 3-6 months referring to the complexity of a transitional period.

“OPORA RUSSIA” also supported other amendments, including a complete refusal from notifications about mergers and acquisitions (as a result entrepreneurs shall not be required for file over 2000 to FAS notifications per year),excluding simultaneous turnover fines under the Code on Administrative Violations and issuing determinations for recovering income unlawfully gained as a result of violating the antimonopoly law.

Entrepreneurs also supported establishing FAS Presidium, which will study and give explanations about antimonopoly enforcement practice. “We would like that from 1st January 2015 FAS Presidium would be able to reconsider the decisions of FAS regional Offices on antimonopoly cases if such decisions breach uniformity of interpreting the norms of the law”, said Igor Artemiev.

Alexander Brechalov suggested that this “pressing and timely measure should be introduced as soon as possible, for instance, from 1st July 2014 as approaching FAS Presidium would enable to resolve difficult situations faster, while appealing some FAS decisions may prolong case investigation, and, therefore, business might be closed.

“FAS has been working in a close contact with representatives of “OPORA RUSSIA” for many years. It allows to promptly react to the problems of small and medium business related to violations of the antimonopoly law and, as a consequence, stimulate development of entrepreneurship in the country”, concluded the Head of FAS.