Russian Competition Law Framework and Enforcement

Russian competition law is governed by the Federal Law on Protection of Competition, which was adopted in 2006. This law establishes the main principles of competition policy in Russia.

The Federal Antimonopoly Service (FAS) is the primary enforcement agency responsible for ensuring compliance with competition law. The FAS has the power to investigate and impose fines on companies that violate competition rules.

The FAS has a wide range of tools at its disposal to enforce competition law, including the power to conduct dawn raids, impose fines, and block mergers. The agency has also been known to use its powers to investigate and fine companies for abuse of dominance.

In 2019, the FAS imposed a record-breaking fine of 18.7 billion rubles on Yandex and Mail.ru Group for allegedly abusing their dominance in the Russian search market.

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Russian competition law has a history that dates back to 1991, when the Supreme Soviet of the USSR ratified the Law on Competition and Limitation of Monopolistic Activity in Goods Market in March of that year.

This law was a response to the need for regulation and stabilization of trade in the final stages of glasnost and the deteriorating USSR. The law became anti-monopoly policies within Russia after secession from the USSR.

In 2006, the Law on the Protection of Competition was legislated, which is legislation that translates the 1991 policies back into law. This law is also known as Federal Law No. 135-FZ.

Federal Law No. 135-FZ was legislated on July 26, 2006, and entered into force on October 26, 2006. This law has been a significant development in Russian competition law.

The primary purpose of Russian Competition Law is to protect competition and prevent anti-competitive practices that could harm consumers or stifle economic growth.

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The Federal Antimonopoly Service (FAS) is the primary regulatory body responsible for enforcing Russian Competition Law. It plays a crucial role in investigating anti-competitive practices and reviewing mergers and acquisitions.

The FAS was established by the Decree of President of Russia №314 on March 9, 2004, and is headed by Igor Artemyev. It has the authority to approve company mergers and regulate operations and transactions within and outside Russia that could have anti-competitive effects on the Russian market.

The law gives the FAS a broad scope of regulation, focusing on the commodity market and financial services. It has taken action against companies like Microsoft and Google for anti-competitive behavior, demonstrating its commitment to enforcing Russian Competition Law.

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The Federal Antimonopoly Service (FAS) is the primary regulatory body responsible for enforcing Russian Competition Law. It was established by the Decree of President of Russia №314 on March 9, 2004.

The FAS is headed by Igor Artemyev and has been instrumental in regulating various aspects of business conduct in Russia. It controls the execution of antitrust and competition laws, and its scope of regulation includes the commodity market and financial services.

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The FAS has the authority to approve company mergers, stipulating various combinations of thresholds of assets of merging companies. An excess of these thresholds would require prior approval from the FAS.

In 2009, the FAS took Microsoft to task for anti-competitive behavior, bringing the company to court. In 2021, the FAS fined search engine corporation Google for allegedly violating Russian advertising law.

The FAS plays a crucial role in investigating anti-competitive practices, reviewing mergers and acquisitions, and imposing penalties for non-compliance.

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The Russian regulatory framework, specifically Ru052, outlines the roles and responsibilities of various bodies in enforcing antimonopoly laws.

The federal antimonopoly body and its territorial offices are responsible for enforcing antimonopoly laws.

Acquisition of stocks or shares in a business partnership can be considered a purchase, giving the acquiring party an opportunity to exercise voting rights.

A natural monopoly can set prices for goods within the rates determined by Russian legislation, but these prices cannot be considered monopolistically high.

Economic entities may receive requests for priority supply of products or contract conclusion from the antimonopoly body.

State or municipal preferences do not include termination of violation of non-discriminative access to products or changing or canceling of a contract.

The antimonopoly body provides conclusions on the consequences of special protective, antidumping, and compensation measures, as well as changes to customs duties.

A person or group of persons acquiring assets of a financial organization exceeding a certain amount established by the RF government must be examined by the antimonopoly body.

In cases of financial organizations violating antimonopoly laws, representatives from the federal body of executive authority on securities market are included in the Commission and make up half of its members.

The Commission adopts decisions in accordance with established procedures.

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Russian Competition Law was legislated on July 26, 2006, with Federal Law No. 135-FZ. This law, also known as the "On the Protection of Competition" law, entered into force on October 26, 2006.

The primary purpose of Russian Competition Law is to protect competition and prevent anti-competitive practices. This is achieved through regulating various aspects of business conduct.

Russian Competition Law regulates agreements between competitors, dominance and abuse of dominance, and mergers and acquisitions.

Russian competition law is a complex set of regulations, but understanding the key provisions and requirements can help businesses navigate the landscape.

The Federal Antimonopoly Service (FAS) is the primary regulatory body responsible for enforcing Russian Competition Law, playing a crucial role in investigating anti-competitive practices and reviewing mergers and acquisitions.

Businesses operating in Russia must comply with key provisions of the law to avoid anti-competitive practices.

Russian Competition Law requires businesses to notify the FAS of certain mergers and acquisitions, with mandatory notification required for transactions that meet specific thresholds.

The FAS reviews notified transactions to assess their potential impact on competition, using the following thresholds to determine whether a transaction requires notification:

A company is considered dominant if it has significant market power and can influence prices or restrict competition, and is subject to regulations on abuse of dominance, including practices such as predatory pricing and refusal to supply essential goods or services.

Compliance with Russian Competition Law is crucial for businesses operating in Russia. Non-compliance can result in significant penalties, reputational damage, and even criminal liability.

The consequences of non-compliance can be severe. The FAS can impose penalties, including fines of up to 15% of a company's annual revenue.

Here are the key enforcement powers of the FAS:

Compliance with Russian Competition Law is crucial for businesses operating in Russia, as non-compliance can result in significant penalties, reputational damage, and even criminal liability.

The consequences of non-compliance can be severe, with the FAS able to impose penalties, including fines of up to 15% of a company's annual revenue.

Businesses may face reputational damage, loss of business opportunities, and even criminal liability if they fail to comply with Russian Competition Law.

The FAS has the power to conduct dawn raids, request documents, and interview witnesses as part of its investigative powers.

The FAS can also impose fines of up to 15% of a company's annual revenue, making it essential for businesses to prioritize compliance.

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Here are some key enforcement powers of the FAS:

By understanding the enforcement powers of the FAS, businesses can take proactive steps to ensure compliance with Russian Competition Law.

Court proceedings in Russia are very quick, with most first instance court judgments issued within three months.

The statutory period for the Court of Appeals to consider and determine an appeal is two months, which is the same time period for the Court of Cassation to consider and determine an appeal.

The judgment of the first instance court becomes effective within one month of its issue unless appealed to the Court of Appeals, which is a usual practice.

In Russia, the average length of time from issue of claim to judgment is relatively short, with most cases resolved within six months.

The statutory period for the Court of Cassation to consider and determine an appeal is the same as in the Court of Appeals, two months.

The maximum fee charged to file commercial claims is fixed at RUB200,000, approximately EUR2,500 at the time of writing.

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Merger control is a crucial aspect of Russian competition law. Businesses must notify the FAS of certain mergers and acquisitions that meet specific thresholds.

The FAS reviews these transactions to assess their potential impact on competition. The review process is mandatory for transactions that meet certain thresholds.

For example, if a transaction has a combined market share that exceeds 35% or a transaction value that exceeds RUB 7 billion, a mandatory notification is required.

Here's a summary of the notification requirements:

Understanding these requirements is essential for businesses involved in mergers and acquisitions in Russia.

In Russia, the conduct of proceedings and costs in competition law cases can be a complex and nuanced topic.

Private claims related to breaches of competition law can be submitted to arbitration and mediation, provided that the parties consent to it.

The Russian competition authority has the power to impose fines on companies that breach competition law, but the specifics of these fines are not outlined in the article.

Arbitration and mediation can be an attractive option for companies looking to resolve disputes quickly and efficiently.

However, it's worth noting that there is no direct prohibition against submitting private claims to arbitration and mediation, as long as the parties agree to it.

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In Russia, there are alternative methods to resolve disputes related to competition law breaches.

Arbitration and mediation can be used to resolve private claims, as long as the parties involved agree to it.

While arbitration and mediation are viable options, it's essential to note that they're not a replacement for the traditional court system.

There is no direct prohibition against using these methods, making them a flexible option for businesses and individuals.

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Russian competition law allows for civil claims, including class actions, to be brought against companies or individuals that have engaged in anti-competitive conduct.

The law was amended in 2012 to provide an express right for companies and individuals harmed by anti-competitive conduct to claim damages, including lost profits.

Group actions for infringement of competition law are theoretically possible in Russia, but have not been tested in practice as yet.

To form a group to bring such claims, all claimants must be participants in the legal relationship out of which the dispute has arisen, i.e., parties to the same contract.

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Russian competition law prohibits certain actions of market-dominant companies, including establishing monopolistically high or low prices.

Agreements between competitors that lead to price fixing, market allocation, or reduction of output are viewed as a cartel and are per se prohibited.

Coordination of the activities of other economic entities is prohibited if it leads to the same consequences as cartel-like agreements.

In Russia, a cartel is possible not only among sellers but also buyers, thanks to recent amendments that took effect in January 2016.

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Russian competition law is designed to protect competition and prevent anti-competitive practices that harm consumers or stifle economic growth. The primary goal is to regulate business conduct and ensure a level playing field for all market players.

The law focuses on regulating agreements between competitors, dominance, and abuse of dominance, as well as mergers and acquisitions. This is crucial for promoting fair competition and preventing monopolies.

In Russia, the Federal Anti-Monopoly Service (FAS) plays a key role in enforcing competition law. The FAS has regional offices that review and enforce anti-monopoly laws, but a new amendment will introduce a dedicated body within the FAS's central administration to review decisions and harmonize practice.

This new body will help safeguard market players' rights more efficiently and rapidly. It will also analyze and summarize anti-monopoly law enforcement practice, providing clarifications on the enforcement of anti-monopoly law.

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