Russia's Anti-Monopoly Service Announces Key Objectives, Highlights "Best Practices"

Russia's Anti-Monopoly Service (FAS) has released its 2014 booklet outlining the history of competition law in Russia, as well as the following key objectives for the near future:  (1) developing and improving the institutions that prevent violations of the antimonopoly law; (2) transitioning to broader protection from an economic entity abusing its dominant position; (3) monitoring satisfaction of the quality of work at FAS by using surveys and performance rankings; (4) ensuring uniform enforcement of laws; and (5) ensuring non-discriminatory access to the services of natural monopolies.  FAS has also made available on their website digital copies of the "White Book" ("Белая Книга"), highlighting the best regional competition practices, and the "Black Book" ("Черная Книга"), highlighting the worst regional anti-monopoly practices. FAS plans to develop an interactive portal to exchange "best practices" ideas and complaints concerning competition and anti-monopoly issues.
 http://en.fas.gov.ru/reports-and-analytics/reports-and-analytics_31142.html

Amendments to Russia's Competion Law Take Effect January 30th

On 28th December 2013, Vladimir Putin signed No. 423-FZ Federal Law “On Introducing Amendments to the Federal Law On Protection of Competition”, which will come into force on January 30, 2014. The amended package excludes notification control over some transactions (actions) of economic concentration.  In addition, the package considerably reduces administrative burden upon small and medium business by allowing the Federal Anti-Monopoly Service and other antimonopoly bodies to focus on the largest transactions with a goal of increasing efficiency of the antimonopoly regulation in the Russian Federation.

http://en.fas.gov.ru/news/news_33460.html

Aeroflot Agreement with Sheremetyevo Airport Faces Antitrust Challenge

Aeroflot will give up plans to become a global carrier if the Federal Anti-Monopoly Service makes it cease its strategic partnership with Sheremetyevo Airport, Vedomosti reported Thursday, citing two sources close to Aeroflot. FAS, who issued an order of violation "For the commission of acts that are contrary to the protection of competition, administrative responsibility in Article 1432 of the Russian Code" on Monday, believes that the contract, which gives Aeroflot priority service, may restrict other carriers from gaining access to the airport.  Penalties for the offense amount to administrative charges of .3%, and maximum sanctions of up to 15% -- both based on a percentage of the charged entity's revenue for  the preceding calendar year (in this case 2011). Michael Vasylenko, Sheremetyevo's CEO, said the airport is continuing to work on plans to improve its infrastructure, including construction of a new terminal by 2015 and of a third runaway, and hopes to voluntarily eliminate any antitrust violations within the one month deadline set by the FAS.
http://www.vedomosti.ru/companies/news/8307211/fas_aeroflot_i_sheremetevo_mogut_zaplatit_bolee_21_mlrd_rub

http://www.themoscowtimes.com/business/article/aeroflot-to-give-up-global-ambitions-if-antitrust-has-its-way/474803.html

FAS Warns against Making Speculative Public Statements Concerning Future of Oil Prices

On August 23rd, the Federal Antimonopoly Service (FAS) warned the Executive Director of the Russian Fuel Union, Grigory Sergienko, that making speculative public statements about potential growth of gas prices, can not only provoke unsubstantiated demand for oil products and consequent increase in prices, but  also is a violation of Russian antimonopoly law.  This is not the first time when FAS has warned the leaders of the Russian Fuel Union that such statements can improperly suggest price guidelines to markets.  FAS also  reminded the Union that it is a non-commercial organization, whose primary role is not setting or monitoring prices for oil products, but rather development of common positions held by participants of the oil market. FAS further noted that if signs of unreasonable oil price growth are revealed, it will undertake measures of antimonopoly regulation (referencing Part 5 Article 11 and Article 25.7 of No.135-FZ Federal Law “On Protection of Competition” prohibiting coordination of economic activities by non-commercial organizations).

http://en.fas.gov.ru/news/news_32416.html

Russian Oil Companies Suspected of Collusion

Bashneft, one of Russia's largest oil producers, is suspected of colluding with LUKOIL and illegally obtaining a license for the Trebs and Titov oil fields. State Duma deputy Sergei Karginov has appealed to the government seeking a return of the oil fields to public control. Bashneft stated that Karginov's information is false and damages the company's business reputation and the investment climate in Russia in general. Bashneft President, Alexander Korsik, has claimed that the allegations have been made in an attempt to manipulate the company's share prices. Bashneft shareholders have filed a lawsuit with the Moscow Commercial Court seeking to invalidate an order that registered the development license for the oil fields in the name of Bashneft's subsidiary, Bashneft-Polyus.

http://rapsinews.com/judicial_news/20120319/262202373.html

Russian Regional Antitrust Chief Shot 3 Times

The chief of the Federal Anti-Monopoly Service's regional branch in Ivanovo was shot Monday morning while heading to work. Alexander Borovkov was shot three times and seriously wounded, the Investigative Committee said in a statement. He was shot as he got out of his car to enter the service's office building in the town of Ivanovo, about 200 kilometers northeast of Moscow. The unknown gunman fled the scene in a vehicle accompanied by an accomplice in a second car. The cars were later found on a nearby street. Investigators suspect a possible motive for the crime may be linked to Borovkov's professional activity.

http://www.themoscowtimes.com/news/article/regional-antitrust-chief-shot-3-times/451140.html
http://www.kommersant.ru/doc/1852368 (video)

Russian Anti-Monopoly Service: Microsoft-Skype Deal May Restrict Competition

Russia’s Anti-Monopoly Service (FAS) postponed to December 2011 the decision on the petition of software giant Microsoft to approve its acquisition of internet communication company Skype. The agency emphasized in a statement that the deal “can restrict competition.” If the acquisition is not approved by Russia, Microsoft will apparently have to either spin off the Russian part of the business or to abandon the Skype deal altogether. The FAS has denied suggestions that the delay in the approval may be related to Microsoft’s negotiations with Russia’s Federal State Security Service (FSB) on the disclosure of Skype codes to the FSB.

http://en.fas.gov.ru/news/news_31742.html
http://gazeta.ru/business/2011/09/27/3782934.shtml

Antitrust Agency Launches Probe into Moscow Cemeteries

Russia’s Federal Anti-Monopoly Service instituted administrative proceedings related to the leasing of all Moscow cemeteries to a single state-run enterprise “Ritual.” Ritual argues that it is not a monopolist because it does not own the cemetery land but rather rents it from the Moscow government. The annual revenue from funeral services in Moscow is estimated at $200 mln.

http://www.kommersant.ru/doc.aspx?DocsID=1530475

Russian Duma To Update Antitrust Laws

The FAS announced on Tuesday that the Duma plans to pass a third anti-monopoly package, updating last year's amendments to Russia's competition laws. According to the FAS, "this package is liberal" when compared to the second package adopted last year. The updates will likely include elimination of liability for certain types of parallel price increases, as well as clearer definitions of terms of art such as "cartel".


http://www.themoscowtimes.com/mobile/antitrust-law-liquor/415161.html.