FAS may be divested of free competition control monopoly

The argument over the Federal Antimonopoly Service (FAS) reforms related to reauthorization between its other departments thrives within the expert community.

Based on the results of the Expert Council meeting affiliated to the Government of the Russian Federation as of June 23, Dmitry Medvedev ordered to carry out the inspection of the service powers. According to experts, the large set of FAS powers influence on the operating quality that doesn’t give an opportunity to concentrate on the key problems of competition development.

In particular, the following is defined:
- to delegate the control of the state and state companies purchases to Federal Service for Fiscal and Budgetary Supervision;
- to delegate the FAS rule-making powers to the Ministry of Economy and Development;
- to integrate the FAS with the Federal Tariff Service (FTS).

The Ministry of Economy and Development met the proposals of the experts with hostile attitude. The Federal Service for Fiscal and Budgetary Supervision monitors the reliability of budget expenses and its proper use and FAS – the competition in trading. The delegation of powers might lead to dilution of control function.

In case of the delegation of rule-making powers, there will be either lack of supervision, or the dual liability. At the same time, the role of the other department will be just technical: legislative amendments will be proposed by the antimonopoly department.

The FAS and FST integration issue is still at the stage of discussion.
In the meantime, members of business environment by contrast appeal no to curb the powers, but to enlarge them, as today it is the only department that really protects the business from monopolists and government officials.