FAS Analyzes Market of Security Services
OREANDA-NEWS. December 27, 2013. The Commission of the Federal Antimonopoly Service (FAS Russia) on analyzing markets approved the findings of analyzing competitive environment on the market of security services for residential premises and the market of services for design, assembling and maintenance of the technical means for security of residential premises in 2010-2011 within the geographic boundaries of municipalities and town districts with the population over 100,000.
As a result of the analysis of the markets of security services for residential premises, the antimonopoly authority established that in the period in question 1098 legal entities provided security services for residential premises in the Russian Federation, of which 16% legal entities were state-owned (units of extra-departmental security service of Federal State Budget-Supported Institution of the Extradepartmental Protection Directorate, of the Main Department of the Ministry of Interior and subordinate regional branches, rendering over 90% of security services for residential premises in the Russian Federation). In 18 subjects of the Russian Federation security services for residential premises were rendered only by the extra-departmental security service of Federal State Budget-Supported Institution of the Extradepartmental Protection Directorate, of the Main Department of the Ministry of Interior and subordinate regional branches.
To reduce entry barriers to the market of security services for residential premises, private security companies propose to exclude possibilities of commercial operations by the units of extra-departmental security service. However, FAS does not support the proposal on legislatively prohibiting security services for residential premises by extra-departmental security service of Federal State Budget-Supported Institution of the Extradepartmental Protection Directorate, of the Main Department of the Ministry of Interior, because although it would lead to development of competition between private security companies, there are risks of considerable increase of prices for the security services of residential premises for the population, which can decrease demand for such services and aggravate the crime rate in Russia.
Since security services for residential premises reduce the overall level of criminality in the country and in view of high social importance of the issues of protecting private property, the antimonopoly authority recommends to consider including security services for residential premises by units of extra-departmental security service of Federal State Budget-Supported Institution of the Extradepartmental Protection Directorate, of the Main Department of the Ministry of Interior and subordinate regional branches in the Federal Register of state and municipal service (functions).
Having analyzed the market of services for design, assembly, and maintenance of the technical means for security services for residential premises, FAS established that in Russia such services in 2010-2011were rendered by 389 legal entities of which 40% were branches of “Okhrana” Federal State Budget-Supported Enterprise of the Ministry of Interior, and 60% - private companies.
Branches of “Okhrana” enjoy higher trust of the population in comparison with private companies operating on this market, and there is a higher demand for their services а due to informing on their services by units extra-departmental security service of Federal State Budget-Supported Institution of the Extradepartmental Protection Directorate, of the Main Department of the Ministry of Interior in rendering security services for residential premises, which is the main barrier for entry of independent organizations to the market of services for design assembly, and maintenance of technical means for security of residential premises.
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