Competition Law and Policy in the Russian Federation.pdf

POLICY BRIEF Organisation N ov em be r 20 04 ? OECD 2004 What have been the strengths and weaknesses of Russian competition policy to date? What should be key priorities in drafting the new competition law? What must be done to make the new Federal Antimonopoly Service effective? For further information For further reading Where to contact us? ion Law Competit and Policy in the Russian FederationIntroduction When the Russian Federation began its transition toward a market- based economy, promoting competition and regulating anticompeti- tive behavior – issues never previously needing to be addressed – arose as new and unfamiliar subjects for state policymaking and law enforcement activities. In order to address these issues, the Russian Federation created a competition authority and basic law in 1991, quite early in its transition period. Support for competition was expressed in the 1993 Constitution, as well as in other fundamental legislation. As part of a larger study of regulatory reform, the OECD in 2003 undertook a detailed assessment of Russia’s decade of experience with competition law and policy. The Report concludes that despite early legislation on the issue and strong expressions of support for competition in the laws, the creation and protection of competition on domestic markets has not been a policy priority. Emphasis on rapid privatization limited the scope of pre-privatization restructuring to promote competition and the competition authority has been expected to serve as a general regulator of behavior in markets, assigned to fill legislative gaps and to enforce against a variety of undesirable practices in markets. Overly broad responsibilities and a lack of credible sanctions have significantly limited the impact of the competition laws. As Russia moves into a new phase of economic expansion, a strong and effective competition policy will be essential for meeting policy priorities, including the government’s current goals of broadening eco