OREANDA-NEWS. July 16, 2014. The 14th session of UNCTAD Inter-Governmental Group of experts on competition law and policy in Geneva (Switzerland) included a Round Table on informational cooperation between competition authorities in case investigations..

The Federal Antimonopoly Service (FAS Russia) was represented by Deputy Head of FAS, Anatoly Golomolzin.

Starting up, Anatoly Golomolzin thanked UNCTAD for possibility to exchange experience in informal cooperation and its importance for investigating particular cases on different markets.

Anatoly Golomolzin reported on the main areas of FAS cooperation: within the framework of the CIS, the Eurasian Economic Space, bilateral and multilateral cooperation within ICN, OECD and UNCTAD. Exercising such cooperation, FAS employs various tools, including exchanging non-confidential information, signing Agreements and Memorandums on Cooperation, organizing consultations, conferences and bilateral meetings on various issues, and establishing International Working Groups.

Next, Anatoly Golomolzin discussed in detail the practice of informal cooperation between competition authorities in the CIS. In this context, Deputy Head of FAS gave a perspective of the efforts of the Interstate Council on Antimonopoly Policy (ICAP). Since 1993, competition authorities of the CIS states carried out significant work on harmonizing competition law, exchanging experience of investigating cases on violations of the antimonopoly law, developing competition on the markets in the CIS states, eliminating barriers for movement of goods and services.

Anatoly Golomolzin also elaborated on the Headquarters for Joint Investigations of Violations of the Antimonopoly Law in the CIS Member-States at ICAP (the Headquarters). It investigates and analyses the markets that are important for the population and are conducive to strengthening economic cooperation within the CIS.

Anatoly Golomolzin pointed out that adopting antimonopoly enforcement measures on aviation markets in the CIS is difficult because such activities are determined by inter-government agreements. ICAP Headquarters analyzed the market and drafted a Report with recommendations towards developing competition in this sector. Such measures included, in particular, increasing the number of cities in the CIS to be open for flights, increasing the number of competing designated air carriers, extrapolating the experience of creating non-discriminatory conditions to airports services. The Report was approved by the Council of the Heads of the Governments of the CIS Member-States in 2008; and enforcement of those measures increased air traffic in the CIS by 2.3 times in 2008 - 2013.

Another example of important markets was the telecommunications market. In 2010, the report drafted by the Headquarters and the efforts of the CIS antimonopoly bodies were approved by the Council of the Heads of the Governments of the CIS Member-States. The antimonopoly authorities of Russia and Kazakhstan started an antimonopoly investigation on the market of roaming communications simultaneously, on the same day. The investigation also finished on the same day: the largest telecommunications companies in Russia and Kazakhstan were recognized as violators of the antimonopoly law. In the course of the investigation, the antimonopoly bodies of the two countries were exchanging non-commercial information, particularly, analysis of pricing specifics for roaming communications services, taking into account the market specifics in investigations. Later on, some other CIS countries also carried out such investigations.

As a result, tariffs for services (voice calls, the Internet, SMS) decreased by 1.5 – 4 times, and traffic volumes increased by 2-4 times accordingly. Later companies began reducing tariffs independently, without antimonopoly enforcement. Ultimately, SMS tariffs dropped threefold, voice messages – by 9 times, data transmission – by 44 times, and traffic increased by 2-10 times. Consumer loyalty has improved. In 2010 every forth used roaming services and in 2013 2 out of 3 consumers used roaming. In the course of the investigation, CIS antimonopoly officers had consultations with EC Commission, took into account EC experience on analysis. “Hence, the CIS reached the results similar to the European Union. The difference is that in the CIS it was achieved through suppressing violations of the antimonopoly law and undertaking measures towards developing competition. Such results in the EC are the consequence of direct governmaent regulation of prices”, emphasized Anatoly Golomolzin.

Next, Deputy Head of FAS stated that experience of informal cooperation under the framework of ICAP and the Headquarters had been taken into account formalizing cooperation within the Eurasian economic integration of Belarus, Russia and Kazakhstan. Thereupon, Anatoly Golomolzin briefly discussed the history of this integration, as well as signing the Treaty on the Eurasian Economic Union. The Treaty reflects the norms on competition, control of subsidies control, state regulation of the tariff of natural monopolies, non-discriminatory access to the services of natural monopolies, establishing common markets in 2015 - 2022. In the near future possibilities of exchanging confidential information will be formalized in a Treaty. At the same time, such informal mechanisms of cooperation as meetings of the Heads of the antimonopoly bodies of the member-states of the Common Economic Space (CES) and a Member of Collegium (Minister) on competition and antimonopoly regulation of the Common Economic Commission (CEC), Advisory Council and relevant CES-based Working Groups continue being in use.

Anatoly Golomolzin also pointed out that majority of markets are not limited by the CIS boundaries and are international. Such markets include oil and oil products. Increasing efficiency of control over such markets required extending the format of non-informal cooperation. Upon an initiative of FAS and Austria’s Federal Competition Authority, the International Working Group on oil products was formed to discuss the issues of methodology and practice of market analysis, monitor oil products markets, and exchange experience of investigating cases on violating the antimonopoly law. Special attention was paid to the issues of global pricing for oil and oil products. As illustrative materials, participants were given leaflets describing the rachievements and prospects of the efforts of the Working Group.

As a result of the efforts of the International Working Group on oil products, an information-exchange platform was formed, access to which is available for officers of the antimonopoly authorities from 20 countries across the globe that are members of the Working Group. An idea of integrating the platform with UNCTAD database was supported by UNCTAD Secretariat. The steps in this direction shall be to form both regional and sectoral databases. Upon FAS presentation at the session, the information base on the markets of medicines can also be included in the secotral elements of UNCTASD database.

Another International Working Group on competition in the pharmaceutical sector was formed upon an initiative of FAS Russia and Italy’s Competition Authority. It comprises 17 competition bodies. Anatoly Golomolzin pointed out that the Working Group discusses, in particular, important issues for the pharmaceutical market on the balance of the rights for protecting intellectual property and development of competition. The problem was already considered by UNCTAD International Group of Experts.

The antimonopoly authorities across the globe continue focusing attention on telecommunications. In that vein, continues its work the International Working Group on the issues of developing international communications markets in roaming. The WG was formed upon an initiative of FAS Russia and Turkey’s Competition Authority and comprises 15 countries. The second meeting of the Working Group was in Istanbul (Turkey) in April 2014. The next meeting is planned to take place in St Petersburg as part of an International Annual Event – “Competition Day in Russia”.

It was also emphasized that considerable efforts were undertaken under BRICS fumbrella, including the issues on establishing modern national antimonopoly laws, as well as discussing experience on investigating cases on the national markets of Brazil, Russia, India, China and South Africa. “In view of the accumulated experience, we expect expansion of result-oriented international experience, including joint market analyses and joint investigations on international markets”, said Anatoly Golomolzin.

Panelists at the Round Table included Herbert Tassano, the Head of Peru Competition Authority, who discussed specifics of informal cooperation in Latin America. Jacques Steenbergen, Director General of Belgium’s Competition Authority, talked about the basic principles of informal international cooperation.

Representatives of Brazil, Columbia, the European Commission, Italy, the USA, South Africa, China, Nicaragua and Tunisia took part in the discussion.

The Tunisian delegation, in particular, raised an issue of possibility of the third parties being involved in the process of interaction between the antimonopoly authorities. Answering the question, Anatoly Golomolzin emphasized the importance of engaging representatives of civil society in work of antimonopoly bodies. For example, activities of the Headquarters are always open, and all market participants, including both business and consumers, can take part in them. FAS also actively cooperates with professional counsel associations: Non-Profit Partnership for Competition Support and Non-Profit Partnership for Competition Support in the CIS. As for the information platform of the International Working Group on oil products, with elaboration on its technology it is planned to open access to it for all interested persons. “It is important to provide access to information verified by the antimonopoly bodies on performance of such complex and significant markets as oil products markets”, pointed out Anatoly Golomolzin.

FAS presentation caused arouse much interest across expert community. In particular, specially invited experts pointed out that it is more common for them to hear information about informal cooperation at the theoretical level, which FAS has invaluable experience of effect-oriented international experience.