Russia (July 26, 2006): Difference between revisions

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New page: '''Score = 22''' ''Governed by:'' Law no. 135 on the Protection of Competition, 26 July 2006 (hereinafter referred to as “Competition Act”). <ref>http://www.fas.gov.ru/english/legisl...
 
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| Extraterritoriality
| Extraterritoriality
| 1
| 1
| The Competition Law applies to operations performed outside Russian which have led to the limitation of competition or affects markets in Russia.
| Article 3 extends the sphere of application to foreign entities whose agreements lead or can lead to restriction of competition in the Russian Federation.


|- class="categorydivision"
|- class="categorydivision"
| Remedies
| Remedies
| Fines
| Fines
| 1
| 0
| Fines are imposed for certain violations.
|  


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|  
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| Prison Sentences
| Prison Sentences
| 1
| 0
| For certain monopolistic violations the court can impose prison sentences.
|  


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| Divestitures
| Divestitures
| 1
| 1
| Judicial liquidation is a punishment for certain violations.
| Article 38(1) gives the Authority the right to take decision on forced division of organizations in violation of the Competition Act or decision on separation of one or several organizations from them.


|- class="categorydivision"
|- class="categorydivision"
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| 3rd Party Initiation
| 3rd Party Initiation
| 1
| 1
| Legislation can be initiated by commercial and non-commercial 3rd parties.
| Article 39(2)(2) states that the Authority may initiate proceedings based on an application from a legal person or a natural person.


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|  
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| Remedies Available to 3rd Parties
| Remedies Available to 3rd Parties
| 1
| 0
| Companies that violate the Act can be held responsible for the damages their actions caused to other undertakings.
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|-
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| 3rd Party Rights in Proceedings
| 3rd Party Rights in Proceedings
| 0
| 1
|  
| Article 43 gives persons participating in the case (including the 3rd party initiator) to have the right to familiarize themselves with the materials of the case.


|- class="categorydivision"
|- class="categorydivision"
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| Voluntary
| Voluntary
| 0
| 0
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| Mandatory
| Mandatory
| 3
| 3
| The Authority must be notified of mergers.
| Article 30(1) states that the antimonopoly authority should be notified by a commercial organization about its creation in the result of merger between commercial organizations.
 
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| Pre-merger
| Pre-merger
| 0
| 0
|  
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| Post-merger
| Post-merger
| 1
| 1
| Notification must come within 45 days of the merger.
| Article 30(1) states that notification must occur not later than forty five days from the date of merger.
 
|- class="categorydivision"
|- class="categorydivision"
| Merger Assessment
| Merger Assessment
| Dominance
| Dominance
| 1
| 0
| The key factors in deciding whether to allow a merger are whether it will strengthen or create a dominant position or restrict competition.
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|-
|  
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| Restriction of Competition
| Restriction of Competition
| 1
| 0
| The key factors in deciding whether to allow a merger are whether it will strengthen or create a dominant position or restrict competition.
|
 
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| 0
| 0
|  
|  
 
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| Public Interest (Pro Authority)
| Public Interest (Pro Authority)
| 0
| 0
|  
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|-
|  
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| Other
| Other
| 0
| 0
|  
|
 
|-
|-
|  
|  
| Efficiency
| Efficiency
| 0
| 0
|  
|
 
|- class="categorydivision"
|- class="categorydivision"
| Dominance
| Dominance
| Limits Access
| Limits Access
| 1
| 0
| Limiting the goods on the market but a dominant undertaking is considered an abusive act.
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|-
|  
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| Abusive Acts
| Abusive Acts
| 1
| 1
| Abuses of a dominant position are expressly forbidden by the act.
| The language of Article 10(1) suggests the enumerated lists of prohibitions is not exhaustive, and therefore, includes other abusive acts.


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| Price Setting
| Price Setting
| 1
| 1
| Price setting is considered an abusive act.
| Article 6 prohibits a dominant firm from setting a price that exceeds the competitive market price.


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| Discriminatory Pricing
| Discriminatory Pricing
| 1
| 1
| Discriminatory conditions are considered an abusive act.
| Article 10(1)(6) prohibits economically, technologically or in any other way unjustified establishment of different prices.
 
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|  
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| Resale Price Maintenance
| Resale Price Maintenance
| 0
| 0
|  
|
 
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|-
|  
|  
| Obstacles to Entry
| Obstacles to Entry
| 1
| 1
| Creating obstacles to entry is considered an abusive act.
| Article 10(1)(9) prohibits creation of barriers to entry.
 
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|-
|  
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| Efficiency Defense
| Efficiency Defense
| 1
| 1
| The act provides exemptions when the economic and social benefit outweighs the detriment to competition.
| Article 13(1)(1) provides a defense where the practice leads to economic progress.
 
|- class="categorydivision"
|- class="categorydivision"
| Restrictive Trade Practices
| Restrictive Trade Practices
| Price Fixing
| Price Fixing
| 1
| 1
| Price fixing is impermissible.
| Article 11(1)(2) prohibits agreements for raising, lowering, or maintaining of prices.
 
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|-
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| Tying
| Tying
| 0
| 1
|  
| Article 10(1)(3) prohibits imposing on a counterparty contractual terms which are unprofitable for the latter or not connected with the subject of agreement.
 
|-
|-
|  
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| Market Division
| Market Division
| 1
| 1
| Market division is prohibited.
| Article 11(1)(3) prohibits division of the commodity market according to the territorial principle, the volume of sales or purchases of commodities, the range of sold products or composition of sellers or purchasers.
 
|-
|-
|  
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| Output Restraint
| Output Restraint
| 1
| 1
| Refusing to fulfill contracts is prohibited.
| Article 11(1)(7) prohibits agreements causing the reduction or cutting off the production of commodities for which there is a demand.
 
|-
|-
|  
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| Market Sharing
| Market Sharing
| 0
| 0
|  
|
 
|-
|-
|  
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| Eliminating Competitors
| Eliminating Competitors
| 1
| 1
| Removing others from the market is prohibited.
| Article 11(1)(9) prohibits agreements leading to the restriction or elimination of competition.
 
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|-
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| Collusive Tendering/Bid-Rigging
| Collusive Tendering/Bid-Rigging
| 1
| 0
| Bid rigging is prohibited.
|
 
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| 0
| 0
|  
|  
 
|-
|-
|  
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| Efficiency Defense
| Efficiency Defense
| 1
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| The Act allows an exemption when the activity has a social or economic benefit that outweighs the detriment.
| Article 13(1)(1) provides a defense where the practice leads to economic progress.
 
|}
|}


== References ==
== References ==
<references />
<references />

Revision as of 02:21, 9 October 2007

Score = 22

Governed by: Law no. 135 on the Protection of Competition, 26 July 2006 (hereinafter referred to as “Competition Act”). [1]

Category Subcategory Score Comment
Scope Extraterritoriality 1 Article 3 extends the sphere of application to foreign entities whose agreements lead or can lead to restriction of competition in the Russian Federation.
Remedies Fines 0
Prison Sentences 0
Divestitures 1 Article 38(1) gives the Authority the right to take decision on forced division of organizations in violation of the Competition Act or decision on separation of one or several organizations from them.
Private Enforcement 3rd Party Initiation 1 Article 39(2)(2) states that the Authority may initiate proceedings based on an application from a legal person or a natural person.
Remedies Available to 3rd Parties 0
3rd Party Rights in Proceedings 1 Article 43 gives persons participating in the case (including the 3rd party initiator) to have the right to familiarize themselves with the materials of the case.
Merger Notification Voluntary 0
Mandatory 3 Article 30(1) states that the antimonopoly authority should be notified by a commercial organization about its creation in the result of merger between commercial organizations.
Pre-merger 0
Post-merger 1 Article 30(1) states that notification must occur not later than forty five days from the date of merger.
Merger Assessment Dominance 0
Restriction of Competition 0
Public Interest (Pro D) 0
Public Interest (Pro Authority) 0
Other 0
Efficiency 0
Dominance Limits Access 0
Abusive Acts 1 The language of Article 10(1) suggests the enumerated lists of prohibitions is not exhaustive, and therefore, includes other abusive acts.
Price Setting 1 Article 6 prohibits a dominant firm from setting a price that exceeds the competitive market price.
Discriminatory Pricing 1 Article 10(1)(6) prohibits economically, technologically or in any other way unjustified establishment of different prices.
Resale Price Maintenance 0
Obstacles to Entry 1 Article 10(1)(9) prohibits creation of barriers to entry.
Efficiency Defense 1 Article 13(1)(1) provides a defense where the practice leads to economic progress.
Restrictive Trade Practices Price Fixing 1 Article 11(1)(2) prohibits agreements for raising, lowering, or maintaining of prices.
Tying 1 Article 10(1)(3) prohibits imposing on a counterparty contractual terms which are unprofitable for the latter or not connected with the subject of agreement.
Market Division 1 Article 11(1)(3) prohibits division of the commodity market according to the territorial principle, the volume of sales or purchases of commodities, the range of sold products or composition of sellers or purchasers.
Output Restraint 1 Article 11(1)(7) prohibits agreements causing the reduction or cutting off the production of commodities for which there is a demand.
Market Sharing 0
Eliminating Competitors 1 Article 11(1)(9) prohibits agreements leading to the restriction or elimination of competition.
Collusive Tendering/Bid-Rigging 0
Supply Refusal 0
Efficiency Defense 1 Article 13(1)(1) provides a defense where the practice leads to economic progress.

References