Antitrust Practices: Clearances, Unfair Competition, and Enforcement in Russia

1) What types of unfair competition are prohibited in your jurisdiction?

The following types of unfair competition are prohibited in Russia: discrediting, misleading, incorrect comparison, creating confusion, unfair acquisition and use of exclusive rights, unfair use of intellectual property results, illegal receipt, use or disclosure of information (trade secrets), dumping (sale of goods below cost), etc.

2) What types of bid rigging exist, and how are they classified?

The main types of collusion:

Horizontal (cartel) — agreements between bidders on prices, distribution of wins, and formal participation.

Vertical — collusion of the customer with a participant (special conditions, technical assignment "for your own").

Collusion with fake participants is false competition through affiliated companies.

Collusion dumping ("ramming") is the artificial lowering of prices to displace competitors.

Qualification:

A cartel agreement is classified as a violation of antitrust legislation (Article 11 of the Federal Law "On Protection of Competition") and is grounds for initiating a case with the Federal Antimonopoly Service and administrative liability under the Code of Administrative Offenses of the Russian Federation. If the agreement resulted or could have resulted in a significant restriction of competition, or the illegal maintenance, increase, or decrease of prices, it is classified under Article 178 of the Criminal Code of the Russian Federation ("Restriction of Competition"). Liability includes a fine, forced labor, or imprisonment, depending on the damage caused and the scale of the crime.

3) How do antitrust authorities detect and investigate cartels and anti-competitive agreements?

Antimonopoly Authorities (FAS of Russia) Cartels and anticompetitive agreements are identified through trade and market analysis, price and share monitoring, documentation and correspondence verification, digital footprints and unscheduled inspections. The signs are repeated victories of some companies, minimal price reduction, alternate distribution of contracts, and communication between participants. Evidence is collected from direct (correspondence, agreements) and indirect data (economic analysis).

4) What measures can companies take to mitigate antitrust risks?

To minimize antitrust risks, it is advisable to implement a compliance system, including internal policies and employee training, focusing on preventing cartel agreements, abuse of dominant position, and unfair competition. Preliminary analysis of concentration transactions is critical: check whether the assets or revenue of participants exceed the threshold of 7 billion rubles, requiring approval from the FAS Russia. Regular monitoring of market share (risks arise when exceeding 35%) helps avoid actions interpreted as restricting competition. All commercial decisions (discounts, pricing) should be documented to justify economic feasibility. An additional safety measure is preliminary consultation with the FAS regarding the legality of transactions or practices.

5) What are the specific rules governing undertakings with a dominant market position?

A dominant market position is not in itself a violation of antitrust legislation. However, the abuse of such a position is prohibited. Abuses include, in particular: setting monopolistically high or low prices, imposing unfavorable contract terms on counterparties, creating barriers to market entry and discriminatory conditions and other violations. It is the abuse of a dominant position that entails the application of measures by the antitrust authority aimed at protecting competition including orders to terminate violations and to eliminate consequences of such violations and administrative liability measures including significant turnover fines.

6) What powers do antitrust authorities have when conducting inspections?

When conducting inspections, the antitrust authority acts independently within its powers. Antitrust authorities have the right to freely access the territory and premises of the inspected entity, obtain necessary documents, information and explanations, and conduct inspections thereof. At the same time, officials of the antitrust authority must comply with antitrust legislation, act on the basis of an order from the head of the authority, and ensure that the inspected entity is informed about the progress and results of the inspection.

Authors: 

Vladislava Novokreshchenova, Associate 

Elena Kurchuk, Counsel

Aleksandra Levenkova, Partner