OREANDA-NEWS. September 11, 2014. “We propose to extrapolate positive experience of introducing the Code on the markets of BRICS and Common Economic Space. By our joint efforts the worst practices must be removed from markets”, stated the Head of the Federal Antimonopoly Service (FAS Russia), Igor Artemiev, at the Round Table on the “The Code of Conduct of Car Manufacturers: establishing pro-competitive rules of the game on the car market” that took place on 8th September 2014 in St Petersburg as part on an international event – “Competition Day in Russia”.

According to the Head of the antimonopoly authority, introducing unified pro-competitive rules at various markets will form the optimal conditions for developing markets and competition.

Igor Artemiev said the reasons for devising the Code were anticompetitive practices existing on the market before adopting it.

Such practices included: discriminatory conditions for dealers access to new cars and spare parts, unreasonable restriction of dealers in their choice of suppliers of equipment and materials, prohibiting them to repair cars of competing makes. It all resulted in restricting competition, raising high market entry barriers, overrating the costs of dealer and after-sales servicing and decreasing its quality.

“The problem that we faced was not typical for European countries: the nature of the market was closed and non-competitive”, pointed out the Head of FAS.

The Code of Conduct of Car Manufacturers on the market of sales of new cars and spare parts to them was devised by FAS jointly with the European Business Association (EBA) and officially presented on 6th December 2013.

The documents formalized the main principles of implementing bona fide competitive strategies on the market and ensured non-discriminatory access to cars and spare parts, intensified competition, reduced market entry barriers and the number of violations of the antimonopoly law. “The Code is based on the best world practices and adopting it is voluntary”, added Igor Artemiev.

Finally, the Head of FAS emphasized: “This Russian experience would be very positive for many countries not only on the market of car sales and repair services. We can also propose the same model of work for the pharmaceutical market. Such cooperation can be launched under the format of BRICS and other integration structures”.

According to the Minister of the Eurasian Economic Commission (EEC) for competition and antimonopoly regulation, Nurlan Aldabergenov, the decision to introduce the Code within the Common Economic Space is already made and the issue will be discussed by the leaders of Belarus and Kazakhstan.

A representative of India’s competition authority also emphasized that he finds introducing the Code in India a “good idea”.

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Other participants of the Round Table on the “The Code of Conduct of Car Manufacturers: establishing pro-competitive rules of the game on the car market” included the General Director of the European Business Association (EBA), Frank Schauff; a coordinator of Directorate General for Competition of the European Commission, Dag Johansson, etc.