Competition Law at Russia
Here’s a detailed overview of Competition Law in Russia:
🇷🇺 Competition Law in Russia
1. Legal Framework
The core law governing competition in Russia is Federal Law No. 135-FZ of 2006 “On Protection of Competition” (often called the Competition Law).
This law aims to prevent monopolistic practices, promote fair competition, and regulate anticompetitive behavior.
2. Key Provisions
Prohibited Practices:
Cartels: Agreements between competitors to fix prices, divide markets, restrict production, or rig bids.
Abuse of Dominant Position: Including predatory pricing, refusal to supply, tying, and discriminatory pricing.
Unfair Competition: Such as misleading advertising, commercial bribery, or unauthorized use of trademarks.
Merger Control:
Certain mergers and acquisitions that meet thresholds related to turnover or market share must be notified and approved by the Federal Antimonopoly Service (FAS).
FAS reviews mergers to prevent excessive market concentration.
Economic Concentration:
The law also regulates joint ventures and other forms of economic concentration.
3. Enforcement Authority
The Federal Antimonopoly Service (FAS Russia) is the main competition watchdog.
FAS has broad powers to investigate anti-competitive conduct, conduct market studies, impose fines, and order corrective measures.
4. Sanctions and Remedies
Fines can be substantial, reaching up to 15% of annual turnover for serious violations.
The law allows for injunctive relief, including orders to cease anti-competitive conduct or to divest assets.
Criminal liability can apply in cases of serious cartel behavior or corruption.
5. Additional Notes
Russia’s competition law has been evolving to align more closely with international standards, but enforcement can also reflect domestic economic policy considerations.
FAS actively targets cartels and abuse of dominance, but also scrutinizes foreign investment and transactions affecting national interests.
Private parties can seek damages through the courts but this is less common compared to administrative enforcement by FAS.
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