OREANDA-NEWS. April 07, 2008. The Federal Antimonopoly Service (FAS Russia) will form a working group to analyze the situation with the dealer agreements in the automotive industry, comprising, in particular, representatives of the manufacturers of engines, units and devices for the motor vehicles. The decision was made at the session of the FAS Russia's Expert Council on developing competition in machine-building, reported the press-centre of FAS Russia.

The key issue at the session was "On the practice of dealer agreements for the manufacturers of the engines, unit and devices of the motor vehicles".

The rapporteurs were the Chairman of the Expert Council - Deputy Head of FAS Russia Andrei Tsyganov, the Deputy Chairman of the Expert Council, the Head of the Department for Industry Control Alexei Ulyanov, the Deputy Head of the Department for Industry Control Dmitry Kupov, representatives of all largest Russian car manufactures ("AvtoVAZ", "Kamaz", "Russkie Mashiny", "Severstal-avto", "Izhavto"), foreign companies (Toyota, Nissan, etc.), the largest dealer networks and several manufacturers of car components.

Due to the absence of established enforcement practice in Russia, majority of the market players do not suspect than many agreements, which are considered usual commercial practice, are, in fact, anticompetitive and liable with statutory penalties.

Therefore, the Expert Council recommended that the manufacturers of the engines, units and devices of the motor vehicles as well as car manufacturers, supplying their products to he Russian market, should petition to FAS Russia asking to verify whether relevant dealer agreements comply with the antimonopoly legislation (under Part 1 Article 35 of the Federal Law "On Protection of Competition").

The antimonopoly legislation (Article 13 of the Federal Law "On Protection of Competition") allows for the Government of the Russian Federation to establish the types of agreements and their conditions, that the state evaluate as permissible, that is, which constitute exceptions from general proscriptions of various types of agreements.

As part of its work on the draft Decree of the Government of the Russian Federation on permissibility of particular types of agreements and their conditions, forbidden under general provisions of the antimonopoly legislation, FAS Russia discussed with business representatives possible exceptions from general proscriptions of vertical agreements.

Andrei Tsyganov drew the session's attention to the fact that in evaluating vertical agreements the antimonopoly authority will employ European Regalements and Directives. At the same time, the antimonopoly authority will take into consideration specific features of the Russian market, applicable to the situation in Russia.

"We are not willing to blindly copy the legislative standards of the European Union and we will encourage active and argumentative dialogue with the market participants" - emphasized Deputy Head of FAS Russia.

The Director on Legal Issues, of "SeverSalAvto" OJSC, Michail Sanin reported about the execution of the FAS Russia's decision and determination in the case of "ZMZ" OJSC. The Director of "RODOS" NTTs" Ltd. Sergey Novikov noted a positive role played by FAS Russia in making a decision on the case. According to Mr Novikov, it will be significant for the development of competition on the market of car components and support of small businesses in the industry.

As stated by Alexei Ulyanov, "in the near future the Expert Council will forward to the Government its proposals on supporting small business, involved in car components manufacturing".

At the session, the participants also discussed the issue "On the practice of using dealer agreements for restricting the access to the goods market of motor vehicle accessories".

Summarizing the results of the session, the members of the Expert Council acknowledged the importance of further advancing the interaction mechanisms between FAS Russia and the actors of the market of manufacturing cars and car components as well as dealer services for this market.