In order to counter the monopolization of markets, as well as to ensure the protection of competition, the state is developing special laws. On their basis, the relevant firms are identified and punished. State antitrust regulation is carried out through special organizations. They pursue appropriate policies and support healthy entrepreneurship. Next, we will examine how antitrust regulation is implemented in Russia.
History reference
The first attempt to conduct antitrust regulation of the economy was made back in 1908. The Sherman Act in force in the United States was taken as a sample. However, the adoption of the relevant standards was foiled by the Russian organization of entrepreneurs. So, as such, the antitrust law appeared only in 1991. Today, the main legal acts in this area include the Constitution, presidential decrees, Federal Law that protects competition in the financial services market, government orders and decrees, etc.
Executive agency
Since 1999, it has been the Ministry of the Russian Federation for the Support of Entrepreneurship and antitrust policy. Until that moment, the executive body was another body. It was the corresponding State Committee. Today, the Antimonopoly Service Office provides, among other things, support for small businesses, creating healthy conditions for the development of competition.
Subject of regulation
It is a relationship that can influence competition in the financial, insurance market. The disadvantages of antitrust regulation and policies designed to provide a healthy environment for interactions are most pronounced in pricing. To date, there is no action of mechanisms to suppress illegal collusion of participants with the aim of raising prices.
There is no clear, evidence-based methodology for regulating value in natural monopoly as well as highly monopolized areas (in the chemical-metallurgical and fuel and energy complexes). In this regard, the increase begins cost inflation price imbalances appear. All this undermines the financial position of many enterprises operating in the manufacturing, agricultural sectors, as well as in the service sector. At the same time, the very unsatisfactory position of the consumer rights protection system remains. Carrying out checks, the antimonopoly service continues to record a significant amount of goods not suitable for consumption, especially foreign production.
Content and types of policies
The regulation of antitrust activities includes two aspects (areas):
- Development and adoption of special regulations.
- Formation of a system of bodies that carry out antitrust regulation and monitor compliance with the adopted provisions.
Models
They are distinguished by two. In legal economic publications, antitrust regulation is presented in the form of the American and European models. The first is the so-called "structuralist approach" to the problem. The second is called "behaviorist."
American model
It is built on the principle of the prohibition of monopoly as a structural element, regardless of its socio-political consequences. Proponents of this approach argue that an industry with such a device will behave accordingly.
As a result, the economic activity of monopolistic structures will certainly be negative from a social point of view. In this regard, they should fall under the influence of relevant regulations. This model thus implies a form of enforcement process. If there is a violation of antitrust laws, then it entails prosecution and subsequent punishment.
European model
In contrast to the previous one, antitrust regulation by this approach provides primarily for control over various kinds of abuse. According to the European model, attention is focused not on the sectoral structure, but on the activity of individual entities.
In this case, the principle of a reasonable approach is applied. He does not classify any monopoly as illegal, but only one whose activity causes negative socio-economic consequences. To implement this rule, it is necessary to form a special system of bodies that would monitor and analyze the state of competition in different markets. If necessary, their antitrust activities may include regulatory, corrective and prohibitive measures that are primarily administrative in nature.
Convergence of approaches
Over the past decades, there has been a decrease in the differences between these models. Along with this, the rapprochement is more oriented towards the European approach, when antitrust regulation of the economy is carried out not so much on the basis of the absolute and relative sizes of economic entities. More attention is paid to the consequences of their activity on society.
Antitrust regulation in the Russian Federation: features
Domestic practice is more oriented towards the European approach. This is reflected in the content of the legislative framework and the powers of activity of executive bodies. The latter apply mainly organizational and administrative techniques. Antitrust regulation of the economy in the Russian Federation contains the following components:
- List of forms of unhealthy (unfair) competition to be banned.
- The concept of a monopolist, its quantitative and qualitative characteristics.
- Definition of the system of bodies exercising control, their powers, tasks and functions.
- Responsibility measures for violations of antitrust laws.
The concept of an economic entity
The monopolist acts as an essential element in the regulatory system. In domestic legal practice, quantitative criteria and the content of the subject is expressed by the concept of "dominant position". This definition is central to the Competition Act.
According to normative acts, the dominant position is presented as the exclusive position of one or several business entities in the market for a particular product, allowing it (them) to have a decisive influence on the general conditions of its circulation or to impede other entities from accessing it. In the Russian Federation, a company is recognized as a monopolist, the share of which for certain products is 65% or more. In some cases, according to the decision of the controlling organization, the dominant position is recognized for the entity whose share does not exceed 35%.
Types of abuse
This category includes any actions that entail or may provoke restriction of competition:
- Imposing unacceptable terms of the contract to the counterparty.
- The withdrawal of products from circulation in order to form a deficit and increase value.
- Coercion to sign “related contracts”.
- Obstacles to market access to other entities.
- Violation of the existing pricing order.
- Establishment of exceptionally low or high cost.
- Unreasonable refusal to conclude an agreement with certain buyers, given the opportunity for the production of relevant products.
All these abuses should be recorded by the Federal Antimonopoly Service.
Forms of unfair competition
In the Russian Federation, this category includes:
- Dissemination of false information that could harm or damage the business reputation of another entity.
- Inaccurate information about consumer qualities and the place of production.
- Incorrect comparison of other business entities.
- Selling products with illegal use of intellectual property results, trademarks and trademarks.
- The receipt, use and subsequent disclosure of production, scientific, technical or trade information without the consent of their owner.
Control
The main executive body in the Russian Federation is the MAP (Ministry of Antimonopoly Policy), which supports entrepreneurship. In the regions there are branches authorized by him. The main tasks performed by the Federal Antimonopoly Service are:
- Assisting in the formation of market relations based on entrepreneurship and competition.
- Prevention, restriction and subsequent suppression of monopolistic activity.
- State control over compliance with relevant regulations.
The antimonopoly service may give the business entity the relevant requirements that are binding. They may indicate the need to eliminate the consequences, separation or separation from the general structure of the enterprise units, change or termination of certain agreements that are contrary to the rules. A monopolist may be ordered to conclude a contract with another entity, to deduct to the federal budget the income received as a result of failure to comply with the provisions established legally.
The Ministry controls the formation, reorganization, liquidation of commercial structures and their associations. Antitrust law also extends to the acquisition of shares or shares in the authorized capital of an economic entity. Compliance with its provisions is also monitored by the MAP. Antitrust law of the Russian Federation includes mainly methods of organizational and administrative influence. However, in some cases more stringent measures may be applied.
Delineation of market sectors
In the economic structure of modern countries, there are always areas where maintaining and maintaining competition is not practical. This may be due to the inefficiency of the sphere or other reasons, for example, ensuring the system of national security of the state. In this regard, the antitrust policy does not provide for the absolute liquidation of dominant enterprises. In this case, the emphasis is on a thorough inventory of the market, the division of sectors into competitive and non-competitive, as in principle.
In the latter case, an enterprise engaged in this segment goes into the category of “natural (state) monopoly”. In this case, maintaining a dominant position is considered justified. A natural monopoly is understood to mean a state of the market in which the efficiency of satisfying demand is higher in the absence of competition. This is mainly due to the technological features of production. Products manufactured by the natural monopoly cannot be replaced by other goods.
