Legal alerts / 12.03.2020

The Federal Law concerning antimonopoly compliance is coming into force

Amendments to the Federal Law “On the protection of competition” concerning antimonopoly compliance come into force on March 12.

In connection with the amendments to the Federal Law on the Protection of Competition, companies will be able to organize a system of internal measures aimed at decreasing the likelihood of their violating antimonopoly legislation. [1] This is known as antimonopoly compliance.

The need to establish and organize antimonopoly compliance in relation to the activities of public authorities was stipulated in the Presidential Decree dated December 21, 2017.[2] Antimonopoly compliance requirements for companies will be regulated from March 12 by the Federal Law.

According to the new regulations, companies will form and regulate this system independently, but at the same time, the Law establishes compulsory elements of antimonopoly compliance required to be contained in one or more internal regulatory documents.

This applies to the following elements:

  • a risk assessment process for violations of antimonopoly legislation;
  • risk reduction measures for violations of antimonopoly legislation;
  • control measures for the functioning of the antimonopoly compliance system;
  • procedures for familiarizing employees with the relevant internal regulatory documents;
  • information about the officer of the company responsible for antimonopoly compliance.

The internal regulatory documents can be adopted at the level of a corporate group if the requirements of such documents will apply to all members of the group. This will facilitate the introduction of such a system in large holding structures.

Companies will be able to send an internal regulatory document to the Federal Antimonopoly Service for review. The Service will issue an opinion as to whether or not such document complies with antimonopoly legislation within 30 days. Information about the adoption (application) of the relevant internal documents must be posted on the company’s official website in Russian.

Borenius recommends that companies should conduct an analysis of and a risk assessment with regard to violations of antimonopoly legislation and the company’s existing system for preventing them. Next, companies should review their internal antimonopoly compliance regulations and consider whether these should be amended to comply with the new requirements of the Law or whether there is a need to develop new regulations and new measures aimed at reducing violations of antimonopoly legislation.

The lawyers at Borenius have considerable experience of providing legal support to business in the field of antimonopoly regulation. They will be able to help any company in the development and implementation of antimonopoly compliance.

 [1] Federal Law No. 33-FZ dated March 1, 2020 “On amendments to the Federal Law “On the protection of competition”.

[2] Decree No. 618 of the President of the Russian Federation dated December 21, 2017 “On the major public policy for the promotion of competition”.

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