OREANDA-NEWS. September 12, 2011. The 18th session of the Headquarters for Joint Investigations of Antimonopoly Violations by the CIS Member - States took place as part of an international event - Competition Day in Russia”, reported the press-centre of FAS Russia. 

The 18th session of the Headquarters for Joint Investigations of Antimonopoly Violations by the CIS Member – States (the Headquarters) took place in Rostov-on-Don as part of an international event - Competition Day in Russia”.

The session, chaired by the Head of the Headquarters Deputy Head of FAS Russia Anatoly Golomolzin, was attended by representatives of the antimonopoly authorities of the CIS member-states and some foreing countries (Austria, Hungary, India, and Latvia) as well as members of “Promoting Competition in the CIS Countries” Non-Commercial Partnership.

Participants of the session discussed a draft report on the state of competition on the market of services for selling food products through retail trading networks, prepared by Moldova on the basis of information supplied by the antimonopoly bodies from the CIS states. Retail markets are socially important, thus nearly all antimonopoly authorities in the CIS took part in drafting the report. The objective of the report is to analyse the problems related to this market and put forward proposals for resolving them based on developing competition and maintaining the balance of interests between producers (suppliers), trading networks and ordinary buyers. The report structure was approved earlier. All antimonopoly authorities in the CIS selected the unified method of market analysis and completed country analysis of retail markets.

The draft report analyses state regulation of the market of services for sales of food products through retail trading networks in the CIS member-states, and an international experience in this field. The draft report pays special attention to analysis of contractual practice between suppliers of food products and trading networks, and the mechanisms of influencing suppliers that affect the level of competition in this segment of the market. In conclusion the draft report outlines proposals towards developing competition on this market.

Presentations about national experience of retail market regulation were made by representatives of the antimonopoly authorities of the CIS and other countries, in particular, Austria, Hungary and India. The Head of FAS Department for Control over Social Sphere and Trade, Timophei Nizhegorodtsev, discussed the experience of regulating such markets in Russia. He talked about several inspections organised by regional offices of FAS Russia. “We analysed supply contracts, most of which, unfortunately, did not comply with the Law “On Trade”. Sine 1st August 2010 we have initiated 101 cases on violating the antimonopoly law, both against suppliers and retail trading networks”, pointed out Timophei Nizhegorodtsev.

Taking into account the urgency of the issue in question, it was decided to improve the draft law and discuss it at the next sessions of the Headquarters, in view of further consideration of the draft report by ICAP.

The conclusions and proposals made in the report will be aimed at satisfying consumers, developing competition, preventing unreasonable price growth, increasing the quality of goods and services. To this purpose the work on the draft report will be organised jointly with the Advisory Committee on Consumer Rights and consumer protection bodies of the CIS member-states. In Russia it is planned that the work will be completed jointly with Rospotrebnadzor (the Federal Service for Consumer Rights and Human Well-Being) to take into account the rules and regulations designed to ensure goods safety and enhancement of the quality of services in retail”, said Anatoly Golomolzin making a presentation.

According to the Head of the Headquarters Anatoly Golomolzin, when improving the report the emphasis would be on using general concepts, including definition of retail market, concentration indices for this market, criteria for market dominance (significant market power), taking into account factors that strengthen dominant position on such market, particularly, combining wholesale and retail sales, as well as symbiosis of trading networks and suppliers of the goods and accounting for multiple forms and methods of organisation of retail trade and activities of various market participants, including small retailers, consumer cooperation, agricultural markets, etc.

The Headquarters also agreed with the proposal made by members of the Non-Commercial Partnership to discuss economic consequences of various institutional measures affecting organisation of trade. The venue will be provided by the Partnership.

The next session of the Headquarters will take place in the first half of October in Alma-Ata (the Republic of Kazakhstan) with participation of representatives of the antimonopoly authorities of the CIS states and other foreing countries.