FAS: Activity of Antimonopoly Regulators of Russia and China is Aimed at Developing Competition and Creating a Fair Market Environment

FAS: Activity of Antimonopoly Regulators of Russia and China is  Aimed at Developing Competition and Creating a Fair Market Environment
Photo: pixabay.com 18.09.2023 694

Andrey Tsyganov, Deputy Head of FAS Russia, took part in the X International Forum of the People's Republic of China on Fair Competition Policy.

Deputy Head of FAS Russia noted in his report the high level of strategic interaction in Russian-Chinese relations, in particular between the antimonopoly authorities of both countries, which has been steadily developing since 1996 [1]. In order to strengthen the partnership between the countries, a new intergovernmental agreement was concluded in 2022, which served as the basis for further development of bilateral cooperation.

An important area of cooperation between the countries is joint activity in the investigation of cases on violation of antimonopoly legislation and consideration of global transactions of economic concentration affecting the state of competition in Russia and China. The parties also exchange views on improving antimonopoly legislation and the practice of its application.

The antimonopoly authorities of Russia and China are constantly introducing "soft law" mechanisms in their work, preparing recommendations and guidelines on antimonopoly regulation in various sectors of the economy and reducing the regulatory burden on business. As an example, Andrey Tsyganov cited the Principles of Interaction of Digital Market Participants developed by FAS Russia in cooperation with the business community, as well as explanations for enterprises on the platform Economy issued by the State Administration for Market Regulation of the People's Republic of China.

The authorities of both countries pay great attention to the implementation of the antimonopoly compliance mechanism. In Russia, this mechanism was established at the legislative level in March 2020 [2], and the quality of preparation of antimonopoly compliance acts is increasing every year. Thus, the number of agreed acts has doubled over the past three years.

In China, in 2022, "Compliance Management Measures for Enterprises of the Central Subordination of the People's Republic of China" came into force. This document established the basic requirements for management and staff to perform their duties in accordance with the provisions of national laws, including in the field of protection and development of competition.

Besides, the antimonopoly authorities of both countries jointly hold meetings and seminars on relevant topics. In particular, in July 2023, on the basis of the Chinese Embassy in Moscow, a meeting was held with representatives of Chinese businesses operating in Russia. Its purpose was to clarify the powers of FAS Russia, as well as the specifics of Russian antimonopoly and advertising legislation and requirements for foreign investment.

In addition, successful cooperation continues within the framework of BRICS, in particular throughout the BRICS Coordinating Committee on Antimonopoly Policy and BRICS Working Groups for the research of competition issues in socially significant markets. Examples of joint cooperation include the preparation of a number of reports by BRICS competition agencies on the regulation of competition in the food, digital and automotive markets and the development of Model Recommendations on the application of a waiver of confidentiality in the process of considering global mergers and acquisitions by the BRICS member states. It allows the antimonopoly regulators of the association to fully discuss transactions, approaches to their evaluation and exchange the necessary information.

Andrey Tsyganov also recalled such a key mechanism of interaction in the BRICS format as the Competition Conference, which takes place every two years alternately in each of the BRICS countries. The next event will take place on October 11-13, 2023 in Delhi (India). The cooperation of the BRICS competition agencies is particularly important in the light of the decision to invite six new countries as full BRICS members.

The antimonopoly authorities of Russia and China are actively cooperating on the UNCTAD platform. In particular, with the support of the SAMR, the issue of combating cross-border cartels was chosen in 2020 as a priority area of UNCTAD's work for the next five years. In addition, a Working Group on Cross-Border Cartels was established, which included more than 50 UN member-states. Working Group is aimed at the exchange of experience in the investigation of such cartels in order to systematize and improve the mechanisms of international cooperation in this area.

At the end of his speech, Deputy Head of FAS Russia noted the positive impact of mutually beneficial partnership between the competition authorities of Russia and China on improving the quality of enforcement activities of states and strengthening cooperation taking into account the conditions of globalization and digitalization.

Besides, within the forum, a meeting was held between Andrey Tsyganov and Ms. Gan Lin, Deputy Minister of the SAMR, Head of the State Antimonopoly Bureau. The parties discussed prospects for further cooperation between antimonopoly regulators of both countries within the framework of bilateral and multilateral cooperation.

In particular, the issue of cooperation between the territorial bodies of FAS Russia and the SAMR was discussed. Thus, Deputy Head of FAS Russia proposed to continue holding regular working meetings on the basis of the regional offices of the FAS Russia in the Far Eastern Federal District together with colleagues from China. Such meetings will be devoted to discussing the application of antimonopoly and advertising legislation in Russia and China, as well as other topics of mutual interest, with the aim of further exchange of experience.

[1] On April 25, 1996, an Intergovernmental Agreement on Cooperation in the Field of Countering Unfair Competition and Antimonopoly Policy was concluded

[2] Federal Law No. 33-FZ of 01.03.2020 "On Amendments to the Federal Law “On Protection of Competition"

For reference:

The Forum is a key event of the Fair Competition Policy Promotion Week, which provides for holding more than 100 public events throughout the PRC under the slogan "A single National Market and Fair Competition for the Future". The Forum was attended by more than 300 representatives of government agencies of various levels, judges, heads of large companies, Chinese and foreign competition experts representing more than 15 countries and international organizations. 

Source: FAS

China  Russia 

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