Legislative amendments on the protection of competition

The legislative amendments on the protection of competition came into force in July 2016. The appropriate adjustments were added to the Federal Law №264-FZ of 03.07.2016 «On the amendments to the Federal Law «On the protection of competition and individual legislative acts of the Russian Federation» and the Federal Law №316-FZ of 03.07.2016 «On the amendments to the Code of Administrative Offences of the Russian Federation».

One of the most important innovations, decreasing the administrative burden on business activity in accordance with the Federal Law №264-FZ, is the implantation in practical use of immunities in regard to business entities in the part of possible improper use of their dominant position as well as in the part of making private anticompetitive agreements.

In particular, the position of legal entity cannot be recognized as dominant if among its founders or participants are one or more physical persons (including individual entrepreneurs) upon condition that its sales revenue for the last calendar year is not more than 400 mln RUB.

However this rule has the exceptions, according to which the immunities are not available for the following entities:

• business entities, included in the list, which is identified by Part 1 Article 9 of the Federal Law of 26.07.2006 № 135-FZ «On the protection of competition»;
• financial organizations;
• natural monopolies on goods market;
• business entities, among the founders or participants of which are legal entities;
• business entities, the share capital of which include the state participation of federal, regional or municipal level.

Besides, the border for transactions on purchase of shares, rights and property, needed for coordination with the Federal Antimonopoly Service of the Russian Federation, was raised to 400 mln RUB.

The unscheduled field checks in regard to small businesses can now only be carried out in coordination with the Prosecution Authorities at the place of business activity in accordance with the procedure established by the relevant order of The Prosecutor General's Office of the Russian Federation. Among exceptions are unscheduled field checks of natural monopolies and the same compliance verifications under cartel agreements.

For reference
According to the Federal Antimonopoly Service, as of 02.10.2015 more than 6 600 of entities were added to the Register of natural monopoly entities and more than 15 300 entities to the Registry of business entities with the market share more than 35%. To get acquainted with the list of these companies - please refer to the section Selections and lists - Lists we recommend of the Information and analytical system Globas-i.