OREANDA-NEWS. November 19, 2007. A joint session of the Non-Commercial Partnership "Promotion of Competition" and senior officials of the Federal Antimonopoly Service (FAS Russia) on the issues of antimonopoly enforcement took place, reported the press-centre of FAS Russia.

As stated in the speech of the Chairman of the General Council of the "Promotion of Competition"Non-Commercial Partnership Eugene Voevodin, the main lines of the organization's work are:

- Building-up effective antimonopoly enforcement practice in close co-operation with the Russian antimonopoly authorities;
- Promoting constructive dialogue on competition between businesses and the Russian antimonopoly authorities;
- Participating in competition-related rule-making, etc.

The Head of FAS Igor Artemyev emphasized that the Antimonopoly Service welcomes the new association. "Similar associations of experts on competition policy and law exist in many countries, - he said, - and experience shows that their co-operation with antimonopoly authorities is beneficial for competition development. The Antimonopoly Service hopes for long-term, mutually beneficial cooperation with the "Promotion of Competition" Non-Commercial Partnership, pointed out the Head of FAS Russia.

The first item on the agenda was the scheme of calculating the turnover penalties imposed by the antimonopoly authorities upon economic entities (legal persons) that committed administrative violations under Articles 14.31 (abusing dominant market position) and 14.32 (concluding competition-restricting agreements or exercising concerted actions that restrict competition) of the Code of Administration Violations.

The participants came to a unanimous opinion that turnover penalties should be calculated based on the principle that the sanction must be in proportion to the damages inflicted within the market boundaries. In addition, the Head of FAS Russia noted that the Antimonopoly Service is going to apply more severe penalties for gross, recidivist violations.

Representatives of the Non-Commercial Partnership and senior officials of FAS Russia also discussed possibility of simultaneously imposing a fine, calculated with regard to the proceeds gained by the violator, and issuing a determination to transfer to the federal budget the income obtained as a result of the antimonopoly violations.

It was recorded that the problem is most complicated and requires detailed consideration. Therefore, members of the Non-Commercial Partnership were suggested to develop draft proposals on the issue.

The meeting participants also discussed the draft Article 178 of the Criminal Code of the Russian Federation, providing criminal liability for anticompetitive actions.

In course of the discussion, Igor Artemyev stated that economic violations must be penalized by economic sanctions under the Code of Administrative Violations; however, cartel collusions are as dangerous crimes as fraudulent activities and, therefore, must be hold criminally liable.

"We hope to finalize the legislative draft together with our colleagues from the Ministry of Internal Affairs and the Ministry of Economic Development and Trade by the end of November and introduce it to the Government by the New Year", said Igor Artemyev.

Summarizing the results of the meeting, the information was acknowledged and it was decided to undertake thorough consideration of the issue at the next session. The Non-Commercial Partnership will give its conclusion on the new edition of Article 178 of the Criminal Code of the Russian Federation, presented by FAS Russia, at the next meeting.