Russian competition law
Encyclopedia
Russian competition law was ratified by the Supreme Soviet
of the USSR in March 1991.
In the final stages of glasnost
and the deteriorating tethering of the USSR, the various member soviet republics saw the need for regulation and stabilisation of trade. The representatives to the Supreme Soviet
of the USSR ratified the Law on Competition and Limitation of Monopolistic Activity in Goods Market in March 1991 which became anti-monopoly policies within Russia after secession from the USSR.
The Law on the Protection of Competition of 2006 is legislation pursued to translate those policies back into law.
The Law on the Protection of Competition came into effect in the Russian Federation on 26 October 2006. The stated aims for establishment of the law was to bring the Russian Federation in line with the general trend of regulated competition within Europe. Beyond western European competition laws against dominance, the Competition Law in Russia expressly presumes the existence of dominance by defining thresholds.
The law also places restrictions on aids from, and public procurement policies of, federal, provincial or municipal governments that otherwise would encourage anti-competition.
The law is enforced by the Federal Anti-Monopoly Service (FAS). The law also gives the FAS authority over approval of company mergers stipulating various combinations of thresholds of assets of merging companies, an excess of which would require prior approval from the FAS. The scope of regulation of the FAS is focused on the commodity market and financial services with mandates over operations and transactions not just within the Russian Federation but also those taking place outside the boundaries of Russia which would have anti-competitive effects on the Russian market place.
As with the trend in the United States and the European Union, the FAS has also taken Microsoft to task for anti-competitive behaviour, by bringing Microsoft to court on 4 June 2009.
In addition to a distinct competition law, the Code of Administrative Offences has also been amended to increase liability of anti-competitive practices. Punitive measures against anti-competitive practices are meted out in terms of percentages of revenues of a company.
governmental organ which controls the execution of the competition law
s and related areas. It was established by the Decree of President of Russia # 314 by March 9, 2004. It is headed by Igor Artemyev
.
Supreme Soviet
The Supreme Soviet of the Soviet Union was the Supreme Soviet in the Soviet Union and the only one with the power to pass constitutional amendments...
of the USSR in March 1991.
In the final stages of glasnost
Glasnost
Glasnost was the policy of maximal publicity, openness, and transparency in the activities of all government institutions in the Soviet Union, together with freedom of information, introduced by Mikhail Gorbachev in the second half of the 1980s...
and the deteriorating tethering of the USSR, the various member soviet republics saw the need for regulation and stabilisation of trade. The representatives to the Supreme Soviet
Supreme Soviet
The Supreme Soviet of the Soviet Union was the Supreme Soviet in the Soviet Union and the only one with the power to pass constitutional amendments...
of the USSR ratified the Law on Competition and Limitation of Monopolistic Activity in Goods Market in March 1991 which became anti-monopoly policies within Russia after secession from the USSR.
The Law on the Protection of Competition of 2006 is legislation pursued to translate those policies back into law.
The Law on the Protection of Competition came into effect in the Russian Federation on 26 October 2006. The stated aims for establishment of the law was to bring the Russian Federation in line with the general trend of regulated competition within Europe. Beyond western European competition laws against dominance, the Competition Law in Russia expressly presumes the existence of dominance by defining thresholds.
- A company is in dominance if it dominates more than 50% of market share.
- A company with less than 35% of market share, unless in an exceptional case, is not considered dominant.
- A collective dominance exists when up to three companies hold a combined market share exceeding 50%.
- A collective dominance exists when up to five companies hold a combined market share exceeding 75%.
- A safe harbour margin of up to 20% market share per company for agreements between companies of different segments of a supply chain.
The law also places restrictions on aids from, and public procurement policies of, federal, provincial or municipal governments that otherwise would encourage anti-competition.
The law is enforced by the Federal Anti-Monopoly Service (FAS). The law also gives the FAS authority over approval of company mergers stipulating various combinations of thresholds of assets of merging companies, an excess of which would require prior approval from the FAS. The scope of regulation of the FAS is focused on the commodity market and financial services with mandates over operations and transactions not just within the Russian Federation but also those taking place outside the boundaries of Russia which would have anti-competitive effects on the Russian market place.
As with the trend in the United States and the European Union, the FAS has also taken Microsoft to task for anti-competitive behaviour, by bringing Microsoft to court on 4 June 2009.
In addition to a distinct competition law, the Code of Administrative Offences has also been amended to increase liability of anti-competitive practices. Punitive measures against anti-competitive practices are meted out in terms of percentages of revenues of a company.
Federal Antimonopoly Service (FAS)
The Federal Antimonopoly Service of Russia, FAS is the federal-level executiveExecutive (government)
Executive branch of Government is the part of government that has sole authority and responsibility for the daily administration of the state bureaucracy. The division of power into separate branches of government is central to the idea of the separation of powers.In many countries, the term...
governmental organ which controls the execution of the competition law
Competition law
Competition law, known in the United States as antitrust law, is law that promotes or maintains market competition by regulating anti-competitive conduct by companies....
s and related areas. It was established by the Decree of President of Russia # 314 by March 9, 2004. It is headed by Igor Artemyev
Igor Artemyev
Igor Yurievich Artemyev is a Russian politician and government official.He graduated from the Leningrad State University Faculty of Biology. and from the Faculty of Law of the St...
.
See also
- Constitution of RussiaConstitution of RussiaThe current Constitution of the Russian Federation was adopted by national referendum on 12 December 1993. Russia's constitution came into force on 25 December 1993, at the moment of its official publication...
- Copyright in RussiaCopyright in RussiaCopyright in Russia developed originally along the same lines as in Western European countries. A first copyright statute dated back to 1828, and in 1857, a general copyright term of fifty years was instituted. The copyright law of 1911 was inspired by Western laws of the continental European...
- Law of the Russian FederationLaw of the Russian FederationThe primary and fundamental statement of laws in the Russian Federation is the Constitution of the Russian Federation.-Domestic sources:Since its adoption in a 1993 referendum the Russian Constitution is considered to be the supreme law of the land...
- Russian legal history