Federal Antimonopoly Service
The Federal Antimonopoly Service of Russia (FAS) (Russian: Федеральная антимонопольная служба России, ФАС России) is the federal-level executive governmental organ that controls the execution of the antitrust law and related areas. It is headed by Igor Artemyev.[1]
It was established by the Decree of President of Russia #314 by March 9, 2004.[1]
History[1]
The foundation of competition authority in Russia was laid in 1990 when Russia started transition from the planning to market economy. That time the State Committee of the RSFSR on Antimonopoly Policy and Support of New Economic Structures was found. The Committee was the central authority on implementing antimonopoly policy, and one of its major aims was development of new antimonopoly legislation.
In 1992 the law “On protection of consumers’ rights” was adopted. In 1995 the Law “On advertising” was developed instituting the unified requirements to the advertisement on the territory of the Russian Federation. The Committee was empowered to control over the Laws’ compliance.
After several restructurings and creation of some new antimonopoly structures (such as the State antimonopoly committee of the Russian Federation, the State Committee of the Russian Federation on support and development of entrepreneurship, the Federal service of the Russian Federation on regulation of natural monopolies in the sphere of transportation, the Federal service of the Russian Federation on regulation of natural monopolies in the sphere communications) they were all replaced in 1998 by the Ministry of the Russian Federation on antimonopoly policy and support of entrepreneurship (MAP Russia). The Minister was appointed and eliminated by the President of the Russian Federation.
The Ministry’s tasks covered competition, development of entrepreneurship, protection of consumers’ rights, legislation on natural monopolies and commodity exchanges and other spheres.
In 2004 in the framework of new reform of public administration the Ministry was abolished, its functions were partly delegated to other authorities. Functions of competition authority were deputed to the Federal antimonopoly service of the Russian Federation (FAS Russia)[2].
Functions
The FAS Russia currently executes its functions in the sphere of adoption of legislation and control over antimonopoly law compliance, natural monopoly law, advertising as well as control in the sphere of public procurement contracts for state and municipal needs.
More precisely, currently its functions include:
- State regulation over compliance of economic entities with the competition law;
- Control over observing competition rules by the authorities, including control over state preferences (state aid);
- Control over public procurement, including the sphere of defense and security;
- Control over natural monopolies’ activity (excluding tariff regulation);
- Control over allocation of property, resources, rights on a competitive basis stipulated in the sectoral legislation;
- Control over advertising law compliance;
- Control over trade legislation compliance;
- Control over foreign investments in strategic industries;
- Control over unfair competition;
- Control over compliance with competition rules in the sphere of intellectual property;
- Specific control functions in defense industries and electricity sector[1].
In July 2015, on a proposal of the Prime-Minister of Russia Dmitry Medvedev President Vladimir Putin approved the merger of the Federal Tariffs Service with the FAS Russia, adding thus to the competences of the latter mandate with price and tariff regulation, regulation of electricity tariffs, gas prices and certain other tariffs and some functions of natural monopoly regulation[2].
Organization
Nowadays the FAS Russia is an authority represented by the Central Office and 85 Regional Offices.
Although the FAS Russia directly subordinates to the Government of the Russian Federation, it is not a part of it. This allows to the authority to initiate independently the proceedings against public authorities, including federal ones.
The FAS Russia's structure consists of sectoral and functional divisions[1]. Among the departments of the FAS Central authority there are:
- Department for Control over Construction and Natural Resources
- Department for Industry Control
- Department for Regulation over Electric Power Industry
- Department for Regulation of Telecommunications and Information Technologies
- Department for Control over Financial Markets
- Department for Control over Advertising and Unfair Competition
- Department for Control over Foreign Investment
- Anti-Cartel Department
- Department for Control over Army and Naval Armaments, Military Communications Equipment
- and others[2].
Prominent cases
In September 2015 the Russian Internet company Yandex complained that Google’s search engine was compulsorily installed as the default on mobile devices and that its icons enjoyed preferential placement on the screen, while other companies were banned from pre-installing their applications. Russia’s Federal Antimonopoly Service had investigated Google for allegedly breaking Russian regulations and ruled that the internet giant must take action by changing some contract provisions with smartphone producers[1].
International Cooperation
The FAS Russia cooperates with international organizations and foreign authorities in the sphere of the antimonopoly policy, combating unfair competition practices and governmental regulation of natural monopolies.
The international activity of the FAS Russia includes:
- Contribution to integration of the Russian economy into the global economic area;
- Realization of economic liabilities of the Russian Federation on issues, related to the competence of the FAS Russia;
- Participation in development of conception of united European economic space;
- Protection of Russian interests by participation in field-oriented international organizations;
- Implementation of the best foreign experience to the Russian practice, advanced training of employees of the FAS Russia;
- Preparation and realization of technical assistance from international organizations on behalf of the FAS Russia
The FAS Russia participates in International Working Groups. On its initiative 3 groups were created:
- Working Group on Investigatory Issues of Pricing in Oil and Oil Product Markets and Methods of Their Functioning (the Working Group on oil) – was created in cooperation with the Austrian Federal Competition Authority in 2011 and closed down in 2014 since all its goals were achieved;
- International Working Group on Research of Competition Issues in the Market of International Telecommunications (Roaming) – was created in 2012 for the purpose of meeting the Recommendations for Developing Markets of International Telecommunications in the CIS Member-States contained in the Report on the State of Competition in the CIS Mobile Communication Markets;
- International Working Group for Studying Competition Problems on Pharmaceutical Sector – was created in cooperation with the Italian Competition Authority in 2012; aimed at elaboration of specific proposals on forming the competition environment in the pharmaceutical market and ensuring the availability of medicines to the consumers.
The FAS Russia has established ties and participates in the work of the Organization of Economic Cooperation and Development (OECD), Interstate Council for Antimonopoly Policy (ICAP) uniting 10 CIS Countries and Ukraine, United Nations Conference on Trade and Development (UNCTAD), Eurasian Economic Union (EEU), International Competition Network (ICN), BRICS, European Union (basing on the Agreement on partnership and cooperation between Russia and the EU entered into force in 1997), Asia-Pacific Economic Cooperation (APEC), Energy Regulators Regional Association (ERRA)[1].
To enhance international cooperation in the competition field, the FAS Russia holds annually the event “Russian Competition Week” which in 2015 gathered heads of competition authorities of the countries all across the globe and was attended by Vladimir Putin[1].
See also
References
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