Changes to the antimonopoly legislation will come into force in January 2016

Less than 4 years passed since the enactment of the so-called “third antimonopoly package”. The antimonopoly practice for the previous period showed the necessity of its future development.

By the Federal law of the Russian Federation as of October 5th, 2015 №275-FZ “On introducing amendments to the Federal Law “On Protection of Competition” and certain legislative acts of the Russian Federation” the following “forth antimonopoly package” will be put into force since January 5th, 2016.

In the Federal law as of July 26th, 2006 №135-FZ “On Protection of Competition” the changes were made in 19 articles, 3 articles were supplemented, 1 chapter and 13 new articles were initiated. The changes were made as well to Article 7 of the Federal law as of August 17th, 1995 №147- FZ “Concerning Natural Monopolies” and to Article 2 of the Federal law as July 13th, 2015 №250- FZ “On introducing amendments to the Federal law “On Protection of Competition” and certain legislative acts of the Russian Federation”. In the Code of the Administrative Offences of the Russian Federation the changes were made in the 9 articles, 1 new article was supplemented and 1 article was recognized void.

All the above-mentioned refer to scale changes in the antimonopoly legislation.

Firstly, at the moment all the cases of the unfair competition such as using of else’s trademark, advertising of “the best product in the market” not being confirmed by the researches are clearly designated. Previously it was considered as a violation as well; however it wasn’t embodied in the documents.

Secondly, the joint venture agreements between enterprises using primarily for reduction of goods and services cost were given the legal status. Formerly the companies ought to pay a penalty amounting to 15 percent of the revenue for this.

Thirdly, the Federal Antimonopoly Service (FAS) was imposed the duty of prejudicial settlement of the issues related to claims against companies. It is enshrined in the law by the term “preliminary conclusion procedure”. Entrepreneurs for their part were entitled the right of prejudicial appeal decision of the FAS territorial administrations in its central office.

The amendments on responsibility for violation of antimonopoly law by the state government bodies are very important. In the first place it refers to the fact when the officers lobby the interests of one company and restrict the access to the market of the others. At present the Federal Antimonopoly Service is eligible for caution of the state official of various levels. The ceiling value of the penal sanctions for the official is raised from 30 to 50 th RUB. Moreover, the authority was entitled the right to restrict the creation of new state or municipal enterprises in the established markets.

According to experts, the adopted amendments give a clear understanding of an unfair competition. On the one hand, the changes are aimed at reducing the administrative pressure upon business, on the other - at raising responsibility of the state authorities for the antimonopoly law compliance.