Antimonopoly Regulation Research Articles

The role of ECLA in the development of a regional strategy for the digitalization of the economy

The article discusses the content, history of development and theoretical foundations of the regional strategy of digitalization of the economy of the United Nations Economic Commission for Latin America and the Caribbean (ECLA), the impact of ECLA on the development of digitalization processes in the region. The acceleration of digitalization processes in the world and in the Latin American region is noted as the leading trend of economic and social life during the coronavirus pandemic and on the way out of the associated crisis. The connection of the ECLA digitalization strategy with the comprehensive regional development strategy put forward in 2010, which is based on the neo-structuralist ideas of the need to transform the production structure of the countries of the region, the elimination of poverty, deep social inequality, as well as with the theory of sustainable development, is traced. The main priorities of the digitalization strategy are identified: ensuring universal access to broadband high-speed Internet, introducing digital technologies into production, helping to digitalize small and medium-sized enterprises, creating a common regional digital market, tax and antimonopoly regulation of the activities of foreign technology companies, security and protection of personal data. The author highly appreciates the role of ECLA in the development of digitalization processes in the region, but expresses doubt about the feasibility of the task of accelerated digital transformation of its economy in the foreseeable future due to barriers associated with the traditional model of development of Latin American countries.

The premise of public interest in the activities of the president of energy regulatory office and the president of the office of competition and consumer protection on the energy market

Every action of the President of the Office of Competition and Consumer Protection [PL: Prezes Urzędu Ochrony Konkurencji i Konsumentów] must be taken in the public interest – the primary purpose of the antimonopoly regulation is to protect the business of entrepreneurs and consumers in the public interest. The President of the Energy Regulatory Office [PL: Urząd Regulacji Energetyki] is also governed by public interest activities. Under the applicable law, he is responsible for the development of competition, and one of his duties is to counteract the adverse effects of natural monopolies and balance the business of energy companies and fuel and energy consumers. In the Act on competition and consumer protection [PL: ustawa o ochronie konkurencji i konsumentów], the notion of public interest is defined very generally. However, the Act on Energy Law [PL: ustawa – Prawo energetyczne] precisely specifies which elements shall be taken into account by the President of the Energy Regulatory Office each time when making a decision. A number of his activities aim to balance the business of energy security with the protection of energy companies’ business and consumers’ business, including issuing decisions on approval of tariffs. The President of the Energy Regulatory Office ensures the implementation of the public interest in this respect, and such interest cannot be understood differently by another regulatory authority under another act. Otherwise, a violation of the axiological coherence of the legal system occurs. In this particular context (in terms of the implementation of the public interest), priority should be given to the utility regulatory authority (the President of ERO) and not to the antimonopoly authority. However, in this case, we are not dealing with a contradiction of the wording of the provisions but with a potential contradiction in terms of the understanding and application of the public interest premise. Therefore, the provisions of utility acts constitute a lex specialis in this respect to the Act on competition and consumer protection – taking into account this particular approach, such contradiction does not occur. Consequently, it should be concluded that if a given action of the President of ERO (an administrative decision issuance) implemented the public interest by the Act (and was maintained in legal transactions, was not repealed, etc.), it thus excludes the possibility of taking action by the President of the Office of Competition and Consumer Protection which was based on the need to protect this public interest.

Legal mechanism for protecting the rights and interests of entrepreneurs

The authors have made an attempt to comprehensively study the problems of ensuring the rights and freedoms of businessmen. We are talking about state measures to protect the rights of businessmen. Comprehensive measures to support small and medium-sized businesses are provided by law in the Republic of Kazakhstan.  In the context of the pandemic, the state canceled annual inspections of the activities of businessmen, introducing a moratorium. As you know, a three-year moratorium on inspections of small and microenterprises has been introduced in the Republic of Kazakhstan since 2020. This became an effective measure to protect businesses from government interference in their activities, which allowed individual entrepreneurs to build a successful business in difficult conditions. Civil scientists have been studying the legal mechanism for protecting the rights and interests of entrepreneurs for many years. Great importance is attached to mediation, pre-trial procedure for the consideration of various complaints and disputes. The education and awareness of the population, as well as the values of civil society: freedom, comprehensive development of the individual, the ability to protect their rights and comply with duties, should fulfill an enduring value in this. Do not forget about subsidies and benefits that can significantly reduce the tax burden for businessmen. Key words: entrepreneurial activity, business, pre-trial procedure, mediation, supervision, monopolies, antimonopoly regulation, protection mechanism, legitimate interests, legal means.

Use of the public-and-private partnership agreements in the conditions of imperfection of legal regulations in the Russian Federation

The objective of this research is to consider some controversial issues of the development of public-and-private partnership (and concession agreements as its most common form) in Russia. Some complaints made by Federal Antimonopoly Service of the Russian Federation to some infrastructure projects are reviewed. The author studied dynamics of private investments into infrastructure projects in the conditions of imperfect legal regulation. The assessment of the validity of the position of Federal Antimonopoly Service is given. It is predicted whether the legislative collisions will prevent the growth of private investments into infrastructure. Recommendations on the development of the mechanism of public-and-private partnership with the observance of antimonopoly regulation, as well as recommendation on the improvement of the legislation in this area are developed. The results of the research can be used by both private participants of public-and-private partnership and the federal, regional and municipal authorities, and also by legislators working on the improvement of the legislative regulation in this area.

Отечественный и зарубежный опыт антимонопольного регулирования рынка продовольствия в условиях экономической глобализации

Abstract. The globalization of the economy creates new opportunities for the formation of global food supply chains as a new type of infrastructure, which requires improved antitrust regulation of global food markets. The purpose of this work is to identify trends in the system of antimonopoly regulation of the food market in the context of globalization based on the systematization of the most important research results of foreign and domestic authors and the practice of competition authorities. The work uses the methods of a systematic approach, logical-structural analysis. The study is based on the provisions and conclusions of modern theories of the foundations of competition, competitive advantage. Information and analytical materials of the Federal Antimonopoly Service play an important role in the work. Results. The content of changes in the contours of global food supply chains is revealed, which manifests itself in the complication of the chain around leading large retailers; active education in the chain of new technology companies; improving chain management processes, leading to lower costs. The analysis of theoretical views on antitrust regulation of global food supply chains is carried out, which makes it possible to identify a number of fundamental provisions on which the activities of competition authorities should be based - to stimulate the competitive behavior of participants in the chain. An assessment of the practice of antimonopoly regulation of global food supply chains in a number of countries is given, focusing on a detailed analysis of all links of the chain, identifying constraints on the development of competition in the segments of the chain. The dynamics of the main indicators of the activities of FAS Russia in the food market is presented, indicating an increase in the identified violations in this economy. Attention is focused on new mechanisms for ensuring competition through the technological transfer of innovative material to Russian companies to enhance their competitiveness. Scientific novelty. The trends and features of the development of global food supply chains are identified based on the identification of specific factors in the context of globalization. Some principles of state antimonopoly control of global food supply chains have been formed, which makes it possible to improve the practice of their regulation.

Modern trends of antimonopoly regulation of digital services market in the world

The article analyzes and considers the main trends in the development of the digital services market for 2018–2021 and illustrative graphs are shown. The purpose of this article is to disclose the current problem of antimonopoly regulation and the development of competition in digital markets and to study the dynamics of the development of the global state of the digital sphere. When analyzing the current state of the digital services market and the development of antimonopoly regulation both in Kazakhstan and in foreign countries, analytical and economic and statistical methods were used, as well as methods of collecting information and abstraction for effective search, grouping, processing and generalization of data. Now the digital services market is developing dynamically and there is an active growth of Internet users around the world. There is also a constant increase in online shopping and the COVID–19 coronavirus pandemic further contributes to this growth. To protect the rights and interests of consumers, digital market players, “beginners”, and to ensure equal and fair competition conditions, it became necessary to revise the regulatory mechanisms used by the competition authorities in many countries. There is an active establishment of tighter regulation of digital platforms by focusing on their specific business models and regulating their access to data so that new entrants can compete on an equal footing with today’s large conglomerates. Important changes are being made to the rules on abuse of dominance in digital markets related to the behavior of “middlemen” That is, the task of the antimonopoly authorities is to create the necessary conditions for the development and stimulation of competition in this industry.

Features of exercising control over economic concentration: the experience of Russia, France and USA

The relevance of the topic is due to the comprehensive development of digital technologies and the need for timely legal regulation of new phenomena of public life. Digitalization is not only rapidly penetrating all sectors of the economy, but is a trigger for the creation of qualitatively new economic relations. The digital transformation of the economy and markets, in addition to objective advantages, also carries negative consequences. Negative manifestations are possible in the monopolization of commodity markets. Antitrust laws are changing in line with the expansion of digital markets. The article identifies the main obstacles to regulating monopolies in the digital economy. The practice of antimonopoly regulation of digital platforms is considered. The tasks of adopting the fifth antimonopoly package as expanding the scope of the Federal Law On Protection of Competition are outlined. In addition, the concept of economic concentration is analyzed, as well as signs of restricting competition when considering transactions in its conditions. Particular attention is paid to differences in approaches to regulating the digital market in Russia, France and USA. A comparative analysis of the antimonopoly legislation of Russia, France and USA, types of economic concentration, regulations for control over concentrations at the level of different jurisdictions has been carried out. The phases of control over economic concentration, the powers of the antimonopoly authorities, the assessment of criminal encroachments on competition are considered in detail.

Topical Issues of the Russian State Antimonopoly Policy (Proposals for the Draft National Plan for the Development of Competition for 2021-2025)

The article is devoted to the development of Antimonopoly policy for the future 2021-2025, which ensures the fundamental rights and freedoms of consumers and entrepreneurs, and supports existing and new forms of economic activity in the context of profound changes in the economy. It is about how the new situation in the markets and in life is beginning to test the foundations of understanding economic and human relations. The author formulates the values of economic development in the new conditions. It is said that the role of consumers in the conditions of clip thinking is decreasing, and they need to be activated in the digital economy. The author assesses the emergence and development of new «human — machine» and «machine - machine» relationships, the ongoing convergence processes, the formation of multilateral, interconnected and global markets, and the correlation of the real and virtual world.Approaches to intellectual Antimonopoly regulation that stimulate innovative development are proposed. Recommendations are given for improving the Antimonopoly policy, taking into account the problems and challenges caused by the coronavirus and similar threats. Approaches to legal regulation of the activities of operators (aggregators) of digital platforms are proposed. Recommendations are given on the procedure for applying Antimonopoly legislation to actions and agreements on the exercise of exclusive rights to the results of intellectual activity. The article substantiates the need to switch to Pro-competitive, flexible, long-term tariff regulation and resuscitate structural reforms based on competitive mechanisms. Changes in international cooperation in the field of Antimonopoly policy are discussed. It is said about creating equal conditions for the activities of Russian and foreign participants in the e-Commerce markets. It is shown how, based on the creation of an exchange ecosystem, it is possible to form one of the world's financial centers in the country. Proposals are made to decriminalize the regulation and control of economic relations in General, as well as issues of Antimonopoly and tariff policy, and state procurements. We propose conceptual changes in the public procurement system with the transition from control of procedures to control the achievement of results using objective quotations of the prices of goods (works, services).

Отказ от благосостояния потребителя при антитрасте цифровых платформ

This article aims to characterize the new theoretical and methodological reversal observed today in the American antitrust regulation of digital platforms. To this end, the author retrospectively describes the history of the development of the theory and methodology of antitrust regulation in the United States. The article describes the ideas of economic structuralism of the “Harvard school”. Further, the author reveals the theoretical and methodological revolution associated with the theory of prices; describes the fundamental differences between the “Harvard” and “Chicago” schools in terms of assessing the relationship between market structure and the intensity of competition. The article reveals the formation of the doctrine of consumer welfare as the dominant one in antitrust regulation. The consequences of the application of the doctrine of consumer welfare in antitrust regulation are described: the narrowness of ideas about barriers to entry, public welfare; breadth of understanding of competitive forces; ignoring the structural and sectoral characteristics of competition; absolutization of indicators of consumer prices and output volumes. The author gives a negative assessment of the effectiveness of the application of the doctrine of consumer welfare in the antitrust regulation of digital platforms. The paper explains how the focus on consumer welfare has been used by digital platforms to generate gigantic market power. In this context, a criticism of the ideas of the Chicago School in relation to digital markets is presented. Reanimation of ideas and methods of economic structuralism in decision-making within the framework of antimonopoly regulation of monopolistic activities of digital platforms is argued.

Current Issues and Problems of Challenging Legal Proceedings for Antimonopoly Control of Administrative Offences Legal in Courts

Introduction. The article is devoted to the development of methods of solving the current issues and problems of how to challenge legal acts of administrative offence proceedings for antimonopoly control in the courts. The focus is on the problem of the balance of interests between support for, and on the other hand increasing the burden on the judicial system of administrative procedural regulations for challenging such acts. Theoretical Basis. Methods. The theoretical basis of this article is the works of domestic and foreign researchers in the field of jurisprudence. This is primarily the administration and administrative procedures, antimonopoly (competition) law, business law and their related scientific fields. The methodological basis of this research is a combination of philosophical, general scientific and private scientific methods of cognition. Results. This study of administrative and procedural antimonopoly regulation has shown that there is no well-thought-out system of legal means in the legislation that meets the needs of en- suring a balance of interests in terms of approaches to procedural economy and the efficiency of using public and private resources. As a result, administrative and judicial proceedings in- crease for the same events of alleged violations whilst there is an absence of an objective need to engage in many of them. This leads to overloading of the judicial system, an unreasonable expenditure of public resources and costs of participants in the process. It creates unreason- able economic-legal barriers, resulting in the distraction of the forces and resources of the state and the private sector from solving problems of social-economic development and socially useful business activity. Discussion and Conclusion. To overcome this complicated problem, obviously, requires legisla- tive change, confidently using the principles of law, and an analogy of law that will form the ap- proaches for the objective needs of the balance of interests. This paper contains specific propos- als for the development of such approaches.

Challenges to Anti-Monopoly Regulation of Russian Media Market

Under the increasing digitalization of media industry, a new economic phenomenon has emerged in the Russian Federation: the so-called digital monopolies. Diversified online companies are developing rapidly and extend the influence of their ecosystems to the whole national media market. The key economic resource of media business, advertising revenues, is distributed increasingly unevenly. An explosive growth of new leaders has already resulted in an unprecedented economic concentration and opened up opportunities for the largest players to abuse their dominant position, which definitely threatens all the other players in the industry. In this context, the issue of legal restrictions on monopolism and protection of free competition in the country's media market has become particularly relevant. The paper examines all the regulatory legal acts in force representing both sector-specific and general anti-monopoly legislation in Russia. It also studied a number of current economic indicators of the whole industry and the most significant media enterprises. We identified some key shortcomings and ambiguous legal provisions hampering the work of the state regulatory body. The author concluded that at the moment the Russian legal field is far from being adjusted to regulating monopolization in the media market. The formal attribution of players to the industry or its segment, the evaluation of their combined market share and the composition of commodity services they offer is a big challenge nowadays. To be able to exercise adequate control over the largest Russian media companies, one has to elaborate totally new approaches and norms taking into account specific characteristics of this industry as an object of regulation.

On the impact of state factor upon competition in the banking sector

This article explores the impact of the state upon competition in the banking sector through the issuance of legal acts and state participation in the capital of banks. The author reviews the peculiarities of the legal writing of the acts that establish the criteria for the admission of banks to banking operations. The article examines the legal positions of the Federal Antimonopoly Service and the Central Bank in cooperation with the position of the Government of the Russian Federation. Analysis is conducted on the law enforcement practice on the issue of bringing to responsibility for anti-competitive actions that involve the market of banking services. The author considers the peculiarities of legal status of individual participants on the market of banking services that are essential for the competition. It is substantiated that the state has strong impact upon competition in the banking sector through the issuance of legal acts and via participation in the capital of banks. The aspects of inequality in the legal status of banks, among which is the factor of state participation in the capital, are currently neglected. In certain instances, state participation is indirectly recognized as a factor that indicates reliability of the bank, while the antimonopoly regulation proceeds from the opposite; this contradiction should be eliminated. In practice, state-owned banks hold dominant position in the banking sector of the economy. Sberbank deserves particular attention as the largest bank in the region in economic terms, as well as a special legal phenomenon, subcategory within the category of commercial banks in theoretical and legal terms. Despite the actual importance of state-owned banks, such organizations do not form a separate legal category due to the heterogeneity or absence of clear idea of the state-owned bank.

Legal Protection of Competition in the Emerging Digital Markets

At a new stage in the development of digitalization, the main challenge is the expotential growth of quantity, quality, diversity of links between citizens, organizations, development institutions and legal regulation, public authorities. Interrelations are dynamic and unstable due to a number of factors because of insufficient synchronization between all elements of socio-economic systems and institutions.The paper examines topical issues of competition law in terms of legal regulation of digital markets. The authors provide for the legal interpretation of the digital market. Key aspects of legal regulation of digital markets are defined. The authors propose instruments of legal regulation of emerging digital markets for the Russian Federation. Their proposals are based on generalization of European experience and practice of the OECD countries.The authors substantiate that widespread digitalization threatens to monopolize economic relations. And this is monopolization of a new, not classical character. Therefore, it is important to identify properly the forms and methods of legal protection of competition in specific digital markets.Based on the results of the study, the authors conclude that the development of the digital economy and the formation of new market relations establish prerequisites for the improvement of antimonopoly regulation, legal rules unification for the protection of competition in global digital markets. Digital markets differ from traditional ones. Therefore, they need special legal regulation. The practice of antimonopoly regulation in the OECD countries should be considered in the context of their consistency with Russian legislative conditions.

Антимонопольное регулирование деятельности IT-гигантов: основные тенденции зарубежного и российского законодательства

The article is devoted to the antimonopoly regulation of IT giants` activities. The author presents an overview of the main trends in foreign and Russian legislation in this area. The problems the antimonopoly regulation of digital markets faces are the following: the complexity of determining the criteria for the dominant position of economic entities in the digital economy and the criteria for assessing the economic concentration in the commodity digital markets; the identification and suppression of cartels; the relationship between competition law and intellectual property rights in the digital age. Some aspects of these problems are considered through the prism of the main trends in the antimonopoly policy in the United States, the European Union, the United Kingdom and Russia. The investigation findings of the USA House of Representatives Antitrust Subcommittee against Apple, Google, Amazon and Facebook are presented. The author justifies the need to separate them, which requires the adoption of appropriate amendments to the antimonopoly legislation. The article analyzes the draft law of the European Commission on the regulation of digital markets – Digital Markets Act, reveals the criteria for classifying IT companies as «gatekeepers», and notes the specific approaches to antimonopoly regulation in the UK and the US. The article describes the concepts «digital platform» and «network effects», presented in the «fifth antimonopoly package of amendments», developed in 2018 by the Federal Antimonopoly Service of the Russian Federation, and gives an overview of the comments of the Ministry of Economic Development regarding these concepts wording in the text of the draft law, which formed the basis for the negative conclusion of the regulator. It is concluded that in the context of the digital markets’ globalization, there is a need for the international legal nature antitrust norms formation, since regional legislation obviously cannot cope with the monopolistic activities of IT giants.

Antimonopoly Regulation Method in Energy Markets Based on the Vickrey–Clarke–Groves Mechanism

We evaluate the applicability of the generic Vickrey-Clarke-Groves (VCG) mechanism as an antimonopoly measure against a profit-maximizing producer with market power operating a portfolio of generating units at the centralized two-settlement energy market. The producer may indicate in its bid not only the altered cost function but also the distorted values of the technical parameters of its generating units, which enter the system-wide constraints of the centralized dispatch optimization problem. To ensure the applicability of the VCG method in this setting, we identify an additional assumption on the changes of the feasible set of the centralized dispatch optimization problem induced by variations of the producer's technical parameters. In the framework of the generic VCG mechanism, we propose an antimonopoly regulation method based on a regulator estimate of the producer's truthful bid. If this estimate is exact, the producer's maximum profit coincides with that in the case of the truthful bidding when no antimonopoly measure is applied. If the estimate is not exact, the error affects neither the producer's (weakly) dominant bid nor its optimal nodal output but manifests itself in the total uplift payment. This ensures an efficient allocation in the form of the optimal output/consumption schedule and shields the (pre-uplift) market prices from the producer's market power. We compare the suggested method with the alternative antimonopoly regulation approach based on the replacement of the producer's bid by a bid composed by the regulator.

Antitrust regulation as a stimulant innovation processes in the agricultural sector

The article is devoted to the problems of formation of favorable competitive environment in the domestic seed market, reducing the dependence of the domestic market on foreign breeding and genetic materials. The aim of the study is to substantiate new requirements for anti-monopoly regulation of intellectual property in agricultural markets to level out risks to competition. Theoretical basis of the study consists of the publications of modern domestic and foreign scientists on the assessment of risks of restricting access to innovative products and technologies for potential competitors, the development of competition at different levels of the food supply chain. The processes of companies' consolidation at the world seed market and control of the market by the players with intellectual property rights to biotechnologies were reflected. The expediency of development of antitrust regulation in the sphere of intellectual property in the domestic seed market through technological transfer of innovative material to Russian companies is shown. Theoretical significance of the conducted study consists in development of some approaches to anti-monopoly regulation in the sphere of intellectual property in the domestic seed market. The practical significance of the study lies in improving the management of innovation process in the agricultural sector.

Проблемы правоприменительной практики антимонопольного регулирования на цифровых рынках как показатель необходимости реформирования законодательства о защите конкуренции

Based on the analysis of law enforcement practice in the field of antimonopoly regulation in digital markets, the authors justify the necessity of reforming the current legislation on the competition protection, and provide statistical data on the scale of the introduction of digital technologies. It is pointed out that the prevailing forms of competition in the global digital market are either an oligopoly or a duopoly. The article provides an overview of the practice of applying the current Russian competition law in relation to IT companies (Yandex N. V., Apple Inc., Google LLC). The article analyzes the shortcomings of the Draft Federal Law «On Amendments to the Federal Law «On Protection of Competition» («the Fifth Antimonopoly Package of Amendments»), prepared by the Federal Antimonopoly Service of the Russian Federation in 2018, and propose the ways to eliminate the shortcomings of some projected standards. The author points out the need to link the concept «digital platform» with the term «information system», designated in the Law of the Russian Federation «On Information, Information Technologies and Information Protection», and to take as a basis the definition enshrined in the French Law on the Digital Republic of 2016. According to the authors` opinion, the concept «network effects» can appear in the legislation only after they are supported by the results of experimentally tested methods for calculating network effects. It is proposed to legally «link» network effects with the use of big data that restricts competition. The results of successive attempts of the FAS (Federal antimonopoly Service) of Russia to limit or cancel «intellectual immunities» are considered, and the correctness of introducing a rule on the removal of such immunities in certain cases is justified. The cases of unfair competition of digital platforms associated with the manipulation of search results algorithms (including the use of interactive enriched responses) are investigated. The article describes the risks of digital ecosystems, the development of which may exacerbate the issues of dominance, in particular, due to the monopolization of data. It is concluded that the FAS legislative initiatives of the sample of 2018 need to be carefully revised in the context of the new realities of the development of IT markets.

Improving antitrust instruments for food security

The study aims to substantiate the fact that the development of agro-industrial complex imposes new requirements for the formation of anti-monopoly regulation tools. The authors point out the threat of cartelization of the industry to food security. It is shown that the cartel violations are systemic in the markets of agroindustrial complex. New features typical of cartel behavior of companies have been identified. It was found that the emergence of new software algorithms greatly facilitates collusion on the market, opens up the possibility of changing the nature of competition, which imposes new requirements for the formation of antitrust regulation tools. It has been marked that it is difficult to suppress anticompetitive practices to develop a complex of measures in order to counteract the cartels: modern technologies of data analysis, application of mathematical modeling methods, economic analysis and also prohibition for development and distribution of price algorithms, their use for establishing of price control.

Theory and practice of legal regulation of monopoly of exclusive rights holders

The article reviews the essence of exclusive rights, the correlation and interaction of antimonopoly legislation and legislation in the field of intellectual property, antimonopoly immunities and violation of exclusive rights as a form of unfair competition. In legal relations related to establish the monopoly of exclusive rights holders, the close relationship between the combination of private and public regulation, characteristic of business law, is clearly traced. In case of violation of the specified monopoly, as well as if the violation of the exclusive right is recognized as unfair competition, protection can be carried out both in accordance with civil and antimonopoly legislation. The Law on Protection of Competition contains provisions on antimonopoly immunity, but the question of the limits of antimonopoly regulation should be resolved taking into account the interests of both rightsholders and users of these results.

The relationship between the market structure, the firms size and their innovative activity in the sectors of the Russian economy: Experience in industry-specific competitive analysis

A number of theoretical and applied studies have shown that there is no unambiguous relationship between the market structure, expressed in particular by the firms size, and firms innovation activity. Understanding the nature of the relationship between the market structure, the firms size and their behavior allows us to raise the level of justification for both business strategies and innovation policy, which is also relevant in the context of the digital transformation of the Russian economy. The paper is aimed at considering the problem of an influence of a market structure with due regard for the peculiarities of their industries on firms innovation activity in Russia for the period 2006–2016. This period was chosen due to the transition to a new Russian National Classifier of Economic Activities edition and the beginning of active Russian economy digitalization in 2017. The hypothesis of the study is that in Russia, under the impact of a number of events, the influence of the firms size on their innovative activity in various sectors of the economy is becoming more acute. By building pooled and panel data models it was shown, that at the studied stage of country development a positive relationship between the average firms size in the industry and their innovation activity can be observed. But some conditions for a stronger growth of innovation activity in industries with firms of smaller sizes are emerging and it indicates a change in the Russian economy structure. As a result of assessing the linkage of the innovation activity intensity and firm size, it can be concluded that there is no connection with belonging to the type of economic activity, i. e. the relationship between the share of costs for technological innovations and the size of firms in the Russian economy has no industry specifics. The further development of this study consist in a more study of the factors that determine the results obtained, the development of recommendations for the formation of a working innovation system in Russia, as well as in the field of antimonopoly regulation on the issue of entry barriers.