Regional Cooperation and Networkingof the FAS Russia

Andrey Tsyganov,Deputy Head of the FAS Russia

FEDERAL ANTIMONOPOLY SERVICE

Sofia Competition Forum

November 12, 2012, Sofia, Bulgaria

• Enforcement of Part 2, Article 3 of the Law on Protection of Competition (extraterritoriality);

• 47 cooperation agreements with competition authorities (incl. Brazil, Bulgaria, Czech Republic, China, Estonia, Italy, Finland, France, Mexico, Poland, Romania, Slovakia, Spain, USA, Venezuela, Vietnam, etc.)

• 5 new type agreements (Mexico, EU, Hungary, Austria, Spain) which include mechanisms of cooperation when considering violations on trans-border markets);

• Coordination of actions with foreign competition authorities within the frameworks of investigations (CIS, ЕU, BRICS, USA);

• Use of inter-state mechanisms for mutual legal assistance.

2

International Cooperation of the FAS Russia

3

Enforcement on the Cross-Border Markets

Cooperation within the CIS

• The Interstate Council for Antimonopoly Policy (ICAP)

• Harmonizing national competition laws of the CIS member-states;

• Coordinating approaches to various regulatory aspects;• Enhancing cooperation between the antimonopoly bodies of

the CIS member-states in investigations of cross-border violations.

was founded in 1993

– is a basic forum for cooperation between the national competition authorities of the CIS countries

• Interstate Agreement on Antimonopoly Policy Coordination (1993)

4

Enforcement on the Cross-Border Markets

Joint investigations within the CIS

Investigations on the markets of air transportation, telecommunications, grain, food products, pharmaceuticals, electric power energy, oil and oil products.

The Headquarters for Joint Investigations was established in 2006 by the Decision of the ICAP members:

Establishment purposes:Joint investigations of violations of the antimonopoly legislation in socially important and infrastructural markets, which successful functioning directly affects welfare of the CIS citizens and promotes integration of the CIS member-states.

5

Establishing supra-national institutions for protecting competition within the Common Economic Space of the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation (since February 2012)

Enforcement on Cross-Border Markets

• Agreement on the common competition principles and rules of October 9, 2010 (entered into force on January 1, 2012)• Agreement on Eurasian Economic Commission (EEC) - a united permanent regulator of the Customs Union (CU) and the Common Economic Space in several spheres of activity, including competition policy.

6

Realization of the competition policywithin the CES

National level Supranational level

EEC

Competition policy in the course of the CES

7

The Eurasian Economic Commission

November 2011 – accepted an Agreement on Eurasian Economic Commission (EEC) - a united permanent regulator of the Customs Union (CU) and the Common Economic Space in several spheres of activity, including competition policy.

November – December 2010– accepted contract-legal basis of the Common Economic Space (CES) - the basis for organization of CES.

February 2012 – the Eurasian Economic Commission (EEC) started exercise its functions.

8

Strengthening closer cooperation withcompetition authorities of EU

Basic means:• conduction of joint markets analysis,• conduction of joint investigations on violations of the

antimonopoly legislation on Russia and the EU markets,• conduction of joint merger reviews of transactions

affecting the state of competition in the Russian and EU markets,

• exchange of information (publicly available, sensitive) under investigation of violation of the antimonopoly legislation.

www.fas.gov.ru

Memorandum of Understanding on Cooperation between the FAS Russia and the DG Competition signed in

Brussels on March 10, 2011.

Cooperation within the BRICS format

9

Joint BRICS’ activities in the field of competition policy:- BRICS International Competition Conferences (1st was held in

2009 in Kazan (Russia); 2nd was held in Beijing (China); 3rd will be held in Delhi (India) in November 2013;

- In 2011 leaders of the Competition Authorities of the BRICS’ countries decided to develop interaction within the working groups on joint investigations in the pharmaceutical market and in the passenger traffic market (Beijing Consensus);

- Joint BRICS’ Book “Competition Law in the BRICS countries” (presented on October 1, 2012, in Dublin (Ireland)

Since 2008 the cooperation with BRIC (since 2011- BRICS) Competition Authorities is one of the major priorities of the FAS Russia’ international activities

10

• participation of the heads of competition authorities of Austria, Hungary, Lithuania, Romania, in the meetings organized by the Interstate Council for Antimonopoly Policy of the CIS member-states (ICAP),

• exchange of information on the most interesting recent cases considered by the FAS Russia through participation in seminars and training programs (annual study visits to the FAS Russia in December),

• exchange of information on the situation in the fuel market (Portugal), on the transaction on acquisition by gas companies (Hungary), on the results of investigations into the financial sector (Hungary), on the anticompetitive practices by producers of equipment (the Netherlands), etc.

The positive experience of bilateral cooperation:

www.fas.gov.ru

11

On the initiative of the FAS Russia the following international working groups (WG) were created : - WG on research of pricing on the oil and petroleum-product markets and methods of their functioning (Russia, Austria, Kazakhstan, Ukraine, Lithuania, Portugal, Germany and others);

- WG on pharmaceuticals (Russia, Italy);

- WG on roaming (Russia, Kazakhstan, Azerbaijan, Ukraine, Turkey and others).

New forms of practical cooperation

12

Supplement No.2. Block Diagram of the Main Activities of the Working Group on Investigating Issues on Pricing at the Oil Product Markets and Methods of their Functioning

in the Near Future

Study of the issues of pricing of oil and oil products on domestic markets, including the impact of world prices on the pricing of national

markets

Discussion of existing approaches to monitoring and analysis of the wholesale and retail markets of oil and petroleum products

Exchange of experience and approaches to the enforcement of the antimonopoly legislation in the market of oil and oil products

Discussion of non-confidential information exchange proceedings among members of the Working Group

Session of the Working Group on Investigating Issues on Pricing at the Oil Product Markets and Methods of their Functioning No.3

“The Russian Competition Day”(September 11, 2012, Kazan, Russia)

Preparation by the competition authorities of proposals for national governments to promote competition in the markets of oil and oil products

Session of the Working Group on Investigating Issues on Pricing at the Oil Product Markets and Methods of their

Functioning No.4 (October 4-5, 2012, London, UK, Platt’s)

Session of the Working Group on Investigating Issues on Pricing at the Oil Product Markets and Methods of their

Functioning No.5( )

3rd International Forum “The Exchange and OTC Markets for Oil and Oil Products in the Russian Federation”

Decision on creating the Working Group. Determination of goals, objectives and priority areas of the Working Group’s operations.

Elaboration of methodology for determining the product and geographical boundaries of the wholesale and retail markets of oil and

petroleum products

Session of the Working Group on Investigating Issues on Pricing at the Oil Product Markets and Methods of their

Functioning No.2 (June 29, 2012, Vienna, Austria)

Session of the Working Group on Investigating Issues on Pricing at the Oil Product Markets and Methods of their

Functioning No.1(January 24, 2012, Moscow, Russia)

The result of the Working Group should become:

13

On September 12, 2012 the Training Centre of the FAS Russia in Kazan began its functioning.

The Training Centre of the FAS Russia is a specially created platform to provide the dialogue on development of competition legislation and exchange of best enforcement practices.

The Training Centre of the FAS Russia

Annual study visits of experts from competition authorities to the FAS Russia:

- Since 2007 – the FAS Russia’ Headquarters in Moscow.

- Since 2012 - the Training Centre of the FAS Russia in Kazan.

THANK YOU!fas.gov.ru

FAS-book

rus_fas

fasovka

anticartel.ru

international@fas.gov.ru