The theory and practice of antimonopoly regulation

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share capital, for operations in the banking market. Prior consent is regarded as an important element of the policy of creating a competitive environment.

 

 

Chapter 2. Antitrust regulation in Russia

 

.1 The formation of antitrust policy in Russia

policy has several key areas:

. Stimulating entrepreneurship

. The development of competition began

. Organizational and legal support for antitrust policyare two methods of antitrust regulation: direct and indirect. The direct method of regulation includes measures eliminating or warning the monopoly position of individual actors in the market. And measures of indirect regulation include mainly financial and lending practices to prevent and overcome the monopoly in the economy. Thus the essence of nearly any antitrust policy is to use the benefits of large-scale economic and neutralize its adverse effects associated with the weakening of competition in commodity and other markets. The specifics of Russian monopolies affected the characteristics of the legislative regulation of their activities. In capitalist countries, the monopoly came when there were already market relations, and the state in order to prevent the strangulation of competition introduced restrictive regulations. The Russian competition legislation was developed with strong monopolies and a developing market relations. Therefore, for our country, it is important not only to limit the monopoly and abuse of dominant position, to enforce the competition rules, to punish their violation, but also create a competitive environment, showing the political will. The first law relating to antitrust economics has appeared in Russia in 1991 - the law "On competition and restriction of monopolistic activity on commodity markets," from March 22, 1991. From 1991 to 1999 a large number of objectively necessary laws was introduced, forming the organizational framework for the regulation of monopolies. For example, the law "On Privatization of State and Municipal Enterprises in the Russian Federation" of July 3, 1991, "The supply of products for federal state needs" from December 13, 1994, "On the financial-industrial groups" of 30 November 1995 ., "On natural monopolies" on August 17, 1995, "On Joint Stock Companies" dated December 26, 1995, "On Noncommercial Organizations" on January 12, 1996, "On Advertising" on July 18, 1996, " Measures to protect the economic interests of the Russian Federation in Foreign Trade "on April 14, 1998 and others, as well as legal acts of the President and the government. But in 1999, eight years after the reforms, antitrust legislation was desperately in need of improvement, mainly on the basis of generalization of enforcement. There was a need to upgrade the entire framework to make it possible to reliably prevent the abuse of market power, infringing the interests of economic entities to apply penalties to businesses and individuals, including officials of the federal and regional executive authorities and local self-government, it is better to regulate the safety and quality of goods and services. As a result of this need, the Russian government in 1999 established the Ministry for Antimonopoly Policy and Entrepreneurship (MAP). It was created on the basis of already existing at the time of the State Committee on Antimonopoly Policy, which failed to achieve tangible progress in establishing a full-fledged competitive environment.consists of several bodies - it includes the Russian Federal Service for Regulation of Natural Monopolies on Transport (FSEMT), Russian Federal Service for Regulation of Natural Monopolies in the field of communication (FSEMS), the State Committee for the Support and Development of Small Entrepreneurship (GEM), and possibly will be included Federal Energy Regulatory Commission (FEC). But despite all these measures, the level of competition in our country is clearly insufficient. Experts call the reasons for the low level of competition in the RF:has not led, as expected, to the emergence of effective owners, who would have cared about the development of the enterprise;reorganization (restructuring) of enterprises has not been used properly, although could facilitate the mass production of new competitive businesses;business has not received proper development.many countries a small business is a natural basis for the formation of a competitive environment, a testing ground for technological and economic venture projects. It has more options to maneuver money by switching from one activity to another, lower operating costs for workers above the feeling of belonging to the affairs of the company and interest in its success. Even in high-risk small businesses willing to take on the innovations that they can then pass on the reproduction of the industrial giants. As international experience shows, the higher the proportion of small enterprises in the total number of businesses and employment, the lower unemployment and higher competition. Today, however, growth in the number of these companies have slowed down, they are mainly engaged in trading and brokering.small businesses need affordable loans and tax benefits, the creation of leasing companies, information, consulting and training business centers, as well as the involvement of small businesses in new fields of business, international cooperation programs. While all this is wishful thinking because of the scarcity of budget, lack of political will among the authorities, opposition officials, opposed to market reforms.the most important of all measures of antitrust policy in Russia proved to be restrictive measures. They are prescribed by law "On Competition" and the competition authority applied to business entities that violate the antitrust laws. It bans monopolistic activity and unfair competition, the actions of government authorities, which may adversely affect the development of competition. Prohibitions on monopolistic activities are divided into prohibitions against agreements restricting competition and prohibition of abuse of the undertakings of a dominant position. Such abuses are most common (60%) violation of antitrust laws. Quite often such violations as imposing unfavorable contract conditions to the counterparty, failure to order the pricing of the companies agreed to limit competition. Monitoring the prices of more than 200 showed that over a third of companies with dominant market position, inflate the prices of goods and services. The same law prohibits set monopolistically high or monopolistically low prices, to confiscate goods from circulation in order to create or maintain a deficit or raise the price, the counterparty to impose contract terms unfavorable to him or not related to the subject of the contract, to include in the agreement discriminates against the conditions which contractor put in an unequal position compared with other enterprises, to prevent the entry of (or withdrawal from it) to other businesses, to encourage contractor refuse to sign contracts with individual buyers (customers), despite the fact that it is possible to produce or deliver the right product. Monopolistically high price is a price set by the dominant market of the product by an economic entity (the manufacturer) to compensate for unreasonable costs due to not making full use of production capacity, and (or) make additional profits by reducing product quality. Monopolistically low price is the price of purchased goods, established by a dominant market of the product buyer in order to earn extra income, and to compensate for his account of the seller unreasonable costs. That is the price, deliberately established a dominant market of the product by the seller at a level that brings the losses from the sale in order to drive competitors from the market. The ban on the establishment of monopoly prices acts fairly stable, although there are many problems. In particular, the "Provisional guidelines on the identification of monopoly prices" on April 21, 1994 offers simultaneous use of the concept of limiting profits and market the concept of comparison. Application of the first concept is complicated by the fact that production costs should be set taking into account the fact that production capacity could be exhausted. But for a general decline in production in Russia it is impossible. It is also impossible to determine the actual cost, revenue and profitability of the enterprise under the rule of barter and unrecorded cash. Therefore, the preferred concept is the comparison of markets in which the antitrust agency does not need to check the production performance enterprise-monopolist, it is enough, based on external factors to identify monopolistically high or low prices. Now in Russia high monopoly prices are in a wide practice, and in countries with developed competition - monopolistic low, sometimes dumping. The Russian monopoly exerts its anti-competitive behavior mainly in its relations with customers or suppliers, rather than with competitors. But as the competition increases the likelihood of monopoly low prices also increases: powerful multi-company through cross-subsidization at the expense of the profitability of some sectors may understate the price of other products and thus to block competitors. In this part, it is especially necessary to monitor the financial and industrial groups. The same Russian antimonopoly legislation seeks to prohibit agreements that restrict competition, which include:

. Agreements that prevent the entrance of other companies on the market;

. Refusals to sign contracts with certain sellers or buyers;

. Agreement on the division of the market on a territorial basis, or range of products sold;

. The price agreement.wit