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News about competition law from ART DE LEX

The 17 November issue of Competition law from ART DE LEX includes a number of essential news items:

  • The fourth antitrust legislative package to amend the 2006 federal law no. 135-FZ went to the Senate Duma.  It reduces administrative restrictions for business and entails less government involvement.  A number of experts, including those at ART DE LEX, are unhappy with the proposals.
  • The Federal Antimonopoly Service intends to amend the Federal Competition Law regarding compensation for losses resulting from antitrust violations in order to better compensate victims.  If it is impossible to determine the exact amount of damage, the proposal recommends a range for judges to consider.  The head of the ART DE LEX Competition Practice, Yaroslav Kulik, noted a number of features in the proposal. 
  • By 2020, the FAS is hoping to eliminate the need to secure approvals from the owners of intellectual property rights in order to import goods.  The legislation will bring Russia in line with other countries and will improve competition and the availability of goods.
  • The FAS is working on nondiscrimination rules for access to natural gas transportation, pipelines, and connections to gas pipelines, in accordance with federal laws.  ART DE LEX attorneys see the proposals as strengthening competition and increasing investment while taking into account the uniqueness of natural monopolies.
  • The head of the FAS indicated his desire to declassify certain types of defense purchases, including clothes and leather goods.

In judicial and administrative areas: 

  • The Supreme Court upheld a lower court ruling that the Russian Railways Company violated federal competition law with regard to transport costs, transportation limits, and other matters.  
  • The Ninth Arbitration Court supported the FAS decision against Teva Pharmaceutical Industries, Ltd, an Israeli company, for dominating the market with Kopakson (Copaxone), used to treat multiple sclerosis, and for refusing to sign an agreement with CJSC MFPDK Biotek, based on spurious claims of protecting intellectual property. 
  • The Moscow Arbitration Court upheld the FAS’s position that Russian airlines, including Aeroflot, set fares that were inconsistent with the demand for seats.  In doing so, the Moscow Arbitration Court opened up the possibility of private litigation against the airlines.  An associate of ART DE LEX, Kirill Dozmarov, commented on the decision.

In international news, Chinese authorities fined Volkswagen and Chrysler, both of which penalized their dealers for deviating from recommended prices and demanded uniform prices for automotive service.

In addition to the items above, the newsletter contains a brief list of pending legislation.

The entire Competition law newsletter is at http://artdelex.ru/eng/reviews/competition-law-10685.

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