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Antitrust Compliance in Russia

Antitrust Compliance in Russia

05.09.2019
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According to RIA News, The Government of the Russian Federation introduced a bill to the State Duma that enshrines the concept of antitrust compliance, as well as establishes the procedure for its organization and requirements for documents of economic entities forming antitrust compliance.


Currently, the punishment for violation of antitrust laws includes negotiable fines and criminal liability. In addition, there is a separate tool for preventing breaches - a warning. By law, the person who executed the warning is not subject to administrative liability. As noted in the message on the Cabinet's website, the warning helps to eliminate violations quickly. Therefore, such mechanisms need to be developed further. 


One of the other tools to prevent breaches and reduce antitrust risks for business entities is the development and implementation of an internal system to ensure compliance with antitrust laws. According to RIA News and Duma website, the draft law proposes to consolidate in the federal law "On Protection of Competition" the concept of the "system of internal compliance with the requirements of antitrust laws." This is supposed to be the procedure for business entities to determine the basic requirements for the content of internal acts of business entities, forming antitrust compliance within the firm.


The draft law also provides that the introduction by the business entity of the compliance system will be taken into account by the antimonopoly authority when classifying its activities as a risk category within the framework of a risk-based approach when monitoring compliance with antitrust laws.


As noted, the adoption of the bill will increase the effectiveness of antitrust regulation, create additional mechanisms that encourage business entities not to violate antitrust laws.