OREANDA-NEWS. March 21, 2013.  “The Model Competition Act is not designed, primarily for introducing common principles and rules of competition. Its purpose is to facilitate work of entrepreneurs of Russia, Belarus and Kazakhstan in the each other’s territories, and make interpenetration of our economies more efficient”, stated Deputy Head of the Federal Antimonopoly Service (FAS Russia) Andrey Tsyganov at an International Research-to-Practice Conference on draft Model Competition Act in Novosibirsk.

One of the aspects of the Model Act is prohibition of anticompetitive practices that are the most harmful for the society and that cause the maximum adverse consequences for competition: abusing dominance, cartels, and market monopolization through mergers and acquisitions.

As pointed out by Andrey Tsyganov, it is very important, however, that the Model Act also includes the principles of allowability of certain actions and agreements if they have a significant positive effect. “Law enforcement officials must weigh both harm and benefits. It is possible that some actions or agreements, that at the first glance are dangerous for competition, ultimately may lead to a positive effect, more important and significant that possible harm”.

Introducing this principle is of considerable importance for innovations and development because often innovative processes are impossible to pursue single-handedly. As a result economic entities conclude various agreements that are aimed at carrying out joint investigations, establishing joint enterprises and introducing new technologies.

Another important aspect of the Model Act is control over economic concentration – an efficient instrument of warning regarding market monopolization. Deputy Head of FAS emphasized, however, that to improve investment climate and enhance interpenetration of businesses in the members-states of the Eurasian Economic Commission the system of control over economic concentration must not create excessive burden over business and national antimonopoly bodies.

Andrey Tsyganov also said that the issues of economic concentration are not regulated by the Agreement on the Common Principles and Rules of Competition on the Common Economic Space, and remain within the national antimonopoly laws. Thus, in his opinion, one of goals of the Model Act must be to describe the procedures for control over Economic concentration so entrepreneurs would be able to act under the transparent and unified rules.

Discussing the draft Model Competition Act, Andrey Tsyganov specially emphasized that the norms of Russian antimonopoly law were taken as the basis for drafting the Model Act. It means that Russian law meets the best international standards.

The Competition Act also reflects the best practices of foreign antimonopoly authorities aimed at preventing violations of the antimonopoly law.

“I have a dream that the Model Competition Act in the Customs Union is the best in the world, that it absorbs the most modern practices from various corners of the world”, commented Andrey Tsyganov.