Russian Competition Research Articles

Antitrust Legislation in the Context of Constitutional Control: Novelties of Law Enforcement Practice

In December 2023, 30 years have passed since the adoption of the Constitution of the Russian Federation. The positions of the constitutional control bodies have always played and continue to play an important role in the development of antimonopoly legislation and law enforcement practice in cases of protection of competition. In the practice of the Constitutional Court of the Russian Federation (CC of Russia) and a number of other law enforcement officers, competition is considered in the context of the constitutional value that all law enforcement officers, including antimonopoly authorities and courts, are obliged to protect. In the constitutions of a number of foreign countries, there is often no direct indication of the need to protect competition, which increases the role of the highest courts in creating a legal mechanism for its protection. The authors analyze the law enforcement practice of the Constitutional Court of the Russian Federation established after 2018 on the application of antimonopoly legislation and the influence of the positions of the supreme constitutional control body on the development of Russian competition law.

The First Work on Oliver Cromwell in Georgia

In 2022, the publishing house “Logos” published the book “Oliver Cromwell. Puri-tan, Captain, Statesmen” (441 pages) by Ivane Menteshashvili, Doctor of Historical Sciences, Professor, Fellow International Napoleonic Society. Ivane Manteshashvili is a Georgian historian, senior scientist at the Georgian National Museum, asso-ciate professor at the University of Georgia, and simultaneous interpreter and poetry translator in Georgian historiography, Iv. Menteshashvili is well-known through his research and works on the history of England and France, mainly: “History of En-gland, “Love and Power. Elizabeth I Tudor”, “Napoleon,” Cardinal Richelieu”- in Georgian, “The Falkland Islands. History of the Conflict,” “Power and Hero. Na-poleon Bonapart,” “Transcaucasia in British Russian Competition in 1880-1914,” “The Contiguity of Civilization of the Western and the Eastern Civilizations During the Activity of the British East India Company in India” -in Russian, etc. By the way, Professor Ivane Menteshashvili partly dealt with Oliver Cromwell in his book “Power and the Heroes Born of Revolution” (in Russian), where he gives portraits of three historical persons: Cromwell, Napoleon, and Stalin.

The Results of the All-Russian Competition of Scientifi c Papers on Library Science, Bibliography and Bibliology — 2023

On 28 November 2023, within the framework of the All–Russian meeting of heads of federal and central regional libraries of Russia, the winners of the next All– Russian competition of scientifi c papers on library science, bibliography and book studies were solemnly awarded. On behalf of the Ministry of Culture of the Russian Federation, the competition was organized by the Russian National Library and co-organized by the Russian State Library with the support of the Russian Library Association. The competition is one of the main tools for assessing the effectiveness of scientifi c activity in the fi eld of librarianship. The competition contributes to the support and development of science in librarianship within the framework of the “Strategy for the development of librarianship in the Russian Federation for the period up to 2030” and meets the objectives set by the President of the Russian Federation in the “Fundamentals of State Cultural Policy” in the fi eld of development of research of social and humanitarian nature.

Word Play in Modern Russian Network Discourse

The phenomenon of the word play is studied in this work on the basis of the network discourse reflected in the materials of the Russian competition “Word of the Year” for 2007-2021. The participants of this contest were subject to sociolinguistic analysis – words, expressions, and phrases that are products of a word play. All of them, as it turned out, were included in the nomination “Neologism of the Year”. The empirical analysis was subordinated to the goal of determining their functionality and identifying the underlying word-formation models and techniques of lexical implementation of the latter. The results of the study indicate the active appeal of users of social networks to the word play in two situations. Firstly, when a communicator wants to express one’s disagreement, a critical attitude towards real events. Then s/he usually resorts to ridicule as a form of word play, functionally aimed at lowering evaluative meanings (a case of “corrective humor”). Secondly, in a situation of counteracting psychological tension and stress caused by a traumatic event, when using a joke, the communicator seeks to reduce emotional tension—his/her own and / or the audience (a case of “benevolent humor”). In both situations, as the analysis showed, the same set of word-formation models of the Russian language and word play techniques are used. To create new lexical units, paronymic attraction and contamination are most widely used. These models are adjoined by prefixation, suffixation, their combination, as well as other traditional Russian language models for generating lexical units. Among the techniques of the word play that provide a laughing reaction, deceived expectation, logical inconsistency and playing with set expressions stand out. In general, the results of the study indicate that the word play remains a popular means of achieving the comic effect desired by the communicator, not only by journalists, as noted by analysts of modern Russian public discourse, but also by ordinary users of social networks in their everyday speech communication.

Legal institute of preferences: concept, composition and system

The author formulates the concept, constitutional and legal basis, composition and system of the legal institution of preferences of the Russian competition law. The relevance of the study is determined by the fact that by now this legal education has not only not been studied in domestic jurisprudence, but is not positioned at all in the doctrine of competition law. Moreover, some legal scholars consider it alien to competition law. The purpose of the study is to substantiate the functioning of a separate legal institution of preferences in the system of competition law, the political and legal basis of which is the constitutional and legal provisions defining the beginnings of the country's market economy and the solution of socially significant tasks of Russian society through the use of the preferential mechanism, which includes two levels of legal forms at the sectoral level norms of international acts and treaties of Russia, regulatory legal acts of the Federation, subjects of the Russian Federation and municipalities of procedural and material order, differentiating into general and special prescriptions, forming its general and special parts. In the process of studying the legal phenomenon of preferences, a dialectical method of cognition was used within the framework of a materialistic approach in combination with private scientific methods of cognition of social and legal phenomena: analysis and synthesis, observations and comparisons, system and framework method, forecasting, planning and modeling. As a result of the conducted research, the fundamentals of the theory of the competitive legal institute of preferences are presented, as well as the positions of denial of the connection of preferences with the regulation and protection of competition among legal scholars and interpretation of the relevant provisions exclusively from the perspective of anticonrurent regulation of the activities of public legal entities are refuted. The provisions and conclusions of the study can be used in the law-making and law enforcement practice of the relevant legal provisions, as well as in the educational process of training lawyers. The novelty lies in the substantive analysis of the regulatory framework for the selective provision by the authorities of public legal entities with the prior consent of the antimonopoly authority of the country to economic entities of preferences as a separate institution of a special part of competition law.The functioning of the competitive legal institute of preferences is based on legal principles that determine its method, tasks and functions.

The foundation and development of anticompetitive coordination legal restriction in Russian competition law

The concept of coordinating economic activity in domestic competition law and law enforcement practice has been investigated. The types of anticompetitive coordination of economic activities (ACED) were highlighted, the ratio of ACED with “vertical” agreements, abuse of dominant position was assessed.

New Year's Address of the Head of the Federal Antimonopoly Service M. A. Shaskolsky to Readers, Authors and Members of the Editorial Board of the Journal "Russian Competition Law and Economу

.

Legal Aspect of Applying Price Parity Clauses by Digital Platform Owners

The article contains a legal analysis of the price parity clause. Its types from the point of view of Russian and foreign competition law. A number of decisions of Russian and foreign courts, antimonopoly regulators made on the basis of antimonopoly investigations against owners of digital platforms who used the clause on price parity in entrepreneurial activities were considered. A comparative analysis of these decisions was carried out to identify similarities and differences in approaches to the legal qualification of the actions of the owner of the digital platform on the use of the price parity clause. In particular, in the countries of the European Union, antitrust regulators and courts have qualified the relevant actions of the owner of the digital platform as a violation of the legislative ban on the conclusion of vertical agreements restricting competition. The Russian antimonopoly regulator and the courts qualify the actions of the owner of the digital platform as a violation of the ban on abuse of dominant position in the relevant commodity market.The article also considers the approaches of Russian and foreign competitive departments, courts to determine the boundaries of commodity markets, the participants of which are the owners of the digital platform.

Digital Transformation of State Policy in the Field of Science Comments on the article “"Roadmap" for the Development of Competition in the Field of Science (Theoretical Model)” published in the journal “Russian Competition Law and Economy” 2021;(3(27)):8-21. https://doi.org/10.47361/2542-0259-2021-3-27-8-21

The article provides comments on the proposed theoretical model of the “roadmap” for the development of competition in the fi eld of science and recommends basic approaches to improve public policy in the fi eld of science; substantiates the weak eff ectiveness of the existing domestic science management system as a state function; the recommendations aimed at the formation of a new state policy are argued, including the potential for digital transformation of the state function of science management as a system, which provides for: the development and application of modern methodology of development strategy management; the introduction of project and process approaches in the implementation of projects within the framework of the strategy; the development and implementation of digital platforms and services that ensure the management and monitoring of the implementation of state policy, taking into account the requirements of the antimonopoly authorities.

Laboratory of change

The Ukrainian market for literature for children and adolescents has undergone a fundamental change since 1991. It has overcome Soviet taboos and traumas, mastered economic crises, and confronted the distortion of competition from Russian competition. By means of biographies, series on Ukrainian history and culture, as well as high-quality illustrated books, this market has tapped into a new readership. But print runs remain small, the assortment limited. There is a need to catch up. Development is being hampered by weak purchasing power and the war. At the same time, the war is drawing the attention of foreign publishers of children’s books to Ukraine and Ukrainian topics.

Russian merger control: in favor of foreign companies?

PurposeThe paper aims to reveal the attitude of the Russian competition authorities towards cross-border mergers involving foreign buyers. The study addresses the following question: Is the probability of Russian competition authorities' intervention significantly different when a foreign buyer takes part in the merger? This is the key test to reveal whether competition authorities gravitate towards “economic nationalism” or “promotion of foreign investments”.Design/methodology/approachThe discrete choice model is applied to the dataset of 7,607 merger cases investigated by the Russian competition authorities between 2012 and 2017. The probability of competition authorities' intervention, such as merger correction by using remedies or deal rejection, is used as a measure of special attention.FindingsThe study finds out favoritism patterns of the regulator with regard to foreign companies. In particular, the deals involving a foreign buyer had less chance of intervention, i.e. imposition of remedies, from national competition authorities. The sanctions period does not moderate the probability of approval of a cross-border merger with foreign buyers by the Russian competition authorities.Originality/valueThe paper contributes to merger control literature by addressing the political economy issues. It discovers that, besides regulation by the law, there are hidden motives, such as protectionism or favoritism of foreign companies, which could drive the regulator's decision. Therefore, the studies of cross-border mergers provide an opportunity to investigate the political issues of merger control through the identification of a special attitude to foreign companies and analysis of regularities that might explain such a policy.

Economic analysis of the firm’s boundaries and the limits of competition: The case of Nord Stream 2 AG

Using publicly available information, the article examines the economic concepts, which underlie the arguments of the decision of Polish competition authority UOKiK in relation to the participants of the Nord Stream 2. It explains the interrelation between economic and legal concepts, which are to be applied to interpret the competitive impact of joint venture and probable theory of harm for infrastructure investments under competition law of European Union, including in comparison with Russian competition law. It has been demonstrated that the resolution of a consortium case should be based on the proof of two statements. The first statement implies that the joint venture is a firm (and therefore the creation of a joint venture is a deal leading to economic concentration). The second statement means that despite Gazprom adopted the commitments about decision of the European Commission and trends in the development of the European gas market, the possibility of price discrimination is retained. Discussion and contestation of the decision against PJSC Gazprom testify in favor of maintaining the relevance of institutional studies and studies of industry markets for resolving legal disputes arising from the application of competition law.

Scientific and Practical Journal “Russian Competition Law and Economy” 10 Years!

.

New Year's Address of the Editorin-Chief to Readers, Authors and Members of the Editorial Board and Editorial Board of the Journal Russian Competition Law and Economy

.

The Effectiveness of Blockchain Smart Contracts in Reshaping the Business Landscape in Nigeria

The Corona Virus Disease 2019 (COVID-19) pandemic has had, and continues to have, a stark economic impact/aftermath on all sectors of life, particularly the health and business sector. Businesses across the globe were compelled to shut down and drastically reduce operations. The impact of commercial transactions coming to a halt resulted in changes that have affected commercial transactions and consumer behaviour. Reported sharp declines in businesses across the globe are unprecedented. At challenging times like this, information technology can come to the rescue to shape world trade and the future economy. Technological mechanisms, such as blockchain smart contracts, can be implemented to avoid economic uncertainty since physical contacts in contract formation and execution are almost impossible during a pandemic. Smart contracts are automation applications that run on blockchain platforms to digitally accelerate the authentication, control, or performance of contract agreements. It is faster, cheaper, accurate and provides a secure environment in multiple fields, from financial services, healthcare, voting and energy resources. This article adopts a doctrinal approach. It highlights the role and convergence of technology, law and commercial transactions under COVID-19 and beyond. It explores the benefits of smart contracts and canvasses for legal measures to regulate/supervise blockchain technology in Nigeria effectively. The Google Android case, digital markets, Turkish competition law, Russian competition law, Indian competition law

Digital Antitrust: The Google (Android) Decisions in Russia, Turkey and India

Digital markets and new business models in multi-sided markets with certain market peculiarities (i.e., network, scale, lock-in effects) have challenged the traditional competition tools. National competition authorities (NCAs), especially younger authorities, across the globe have struggled with the investigations of anticompetitive practices in those markets. Specifically, the paper will use Google (Android) as a case study to explore the approaches taken by three competition authorities, based in Russia, Turkey and India, leading to the prohibition decisions of their national competition laws. Discussions centred on the nationalGoogle Android decisions will be placed in a broader context underpinned by recent ongoing developments of competition laws in Russia, Turkey and India. The Google Android case, digital markets, Turkish competition law, Russian competition law, Indian competition law

The market regulation triad: Antitrust, industrial policy and protectionism in the optical fiber market

Implementation of the import substitution strategy in Russia in some cases is associated with the risk of the state supporting technologically ineffective domestic producers, whose interests are taken into account in the course of industry regulation and antitrust. The article examines the problems of using the tools of antimonopoly policy (and its relationship with industrial policy) in the context of launching single-mode optical fiber by a Russian company with limited technological production competencies in the short term. While analyzing the results of optical fiber antitrust case, the authors identify the distortion of the Russian competition policy objectives and the misuse of its tools. Methodologically, the study rests on industrial organization theory, antitrust economics and new institutional economic theory (in particular, institutional design). Data from the analytical agency CRU Monitor and customs statistics are used as the information base for quantitative (economic-statistical) analysis. The article identifies the factors that determine the dynamics of the optical fiber market: demand for optical fiber cable (product of the related market); production capacities of preforms as the main raw material for optical fiber; integration of the stages of the optical fiber production process; and investments in R&D. The Elzinga-Hogarty test was performed to delimit the geographical boundaries of the single-mode fiber market. The results shows that the Federal Antimonopoly Service of Russia drew false conclusions about narrow geographical boundaries within the Russian Federation. This conclusion is important in terms of complying with the procedure for analyzing the competition in commodity markets, since incorrect delimitation of the market’s geographical boundaries can lead to erroneous estimates of market concentration and the mistaken detection of a company’s market dominance as a potential competitor of a domestic manufacturer. Lobbying the interests of national manufacturers not only contradicts the principles of competition protection, but also reduces the incentives of new market players to innovate and accumulate knowledge specific to the industry, which is one of the key factors of competitiveness in the optical communication markets

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.

The influence of Worldskills technologies on the formation of professional competence of college students

The international experience shows that the mechanism of the WorldSkills competitive movement contributes to the development of the vocational education system. The study aimed to consider the Russian competition movement Worldskills Russia (WSR), as part of the international movement in terms of research problems: what is the pedagogical potential of WSR technologies and how effectively it provides the formation of the necessary professional and general competencies of students of secondary vocational institutions in blended learning (for example, medical college). The subject of the analysis was Russian and foreign research related to the formation of the competition movement; special attention was paid on materials that reveal the use of WSR technologies in educational institutions of the secondary vocational education system. The questionnaire was used to get students’ vision of WSR, their motivation for participating in the WSR. It was determined that the development processes of WSR included: the formation of the legislative framework; the allocation and use of significant state budget funds for professional training of teachers with the receipt of certificates of WSR Experts; significant costs for conducting exams according to the WSR standard, aimed at increasing the competitiveness of specialists for the innovative economy of the Russian Federation. A survey of medical college students shows that the involvement of the student audience in professional competitions is not ubiquitous; only 24.6% of first-year students of the first-year vocational education system are informed about the WSR movement. Only 16.9% of students were motivated to participate in Worldskills competitions. The integration of Worldskills technologies into the educational process in the blended learning model, along with project activities, ensures the formation of the necessary professional and general competencies of students of secondary vocational institutions. Methodological guidelines for the practice of vocational education in preparation for Worldskills require the solution of a set of related pedagogical and didactic problems. The research results can be used in the educational process of the secondary vocational education system.

The calling card of Russian digital antitrust

Digital antitrust is at the forefront of all expert discussions and is far from becoming an area of consensus among researchers. Moreover, the prescriptions for developed countries do not fit well the situation in developing countries, and namely in BRICS: where the violator of antitrust laws is based compared to national firms becomes an important factor that links competition and industrial policy. The article uses three recent cases from Russian antitrust policy in the digital sphere to illustrate typical patterns of platform conduct that lead not just to a restriction of competition that needs to be remedied by antitrust measures, but also to noteworthy distribution effects. The cases also illustrate the approach taken by the Russian competition authority to some typical problems that arise in digital markets, e.g. market definition, conduct interpretation, behavioral effects, and remedies. The analysis sheds light on the specifics of Russian antitrust policy in digital markets, as well as their interpretation in the context of competition policy in developing countries and the link between competition and industrial policies.