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(Task II.E.P.3)
Economic Analysis of Associates in Terms of Antimonopoly Regulation
S.B. Avdasheva, A.E. Shatitko
Introduction
This paper has been prepared as part of a dedicated RECEP project intended to be used in the unfolding debate on improvement of the market competition rules in Russia, including inter alia discussions on the new draft law "Concerning Competition Protection". The main objective of this paper is to outline approaches to definition of associates as a group of multiple economic agents subject to specific proprietary and binding (contractual) relationships that impact or may impact the terms of competition on the market. The set objective presupposes resolving the following two interrelated issues:
- (1) identify significant qualification criteria for associates definition;
- (2) assess applicability of "associate" definition in antimonopoly regulation.
"Associates" is among the basic definitions employed in antimonopoly regulatory practices. Improvement of the antimonopoly policy of the Russian Federation requires finding solution to diverse problems, including inter alia changes in the regulatory constituent of the government antimonopoly policy. The proposed option comprises several sections each of which is dedicated to a relevant issue that needs to be resolved.
First, an "associates" definition must be introduced in the existing antimonopoly legislation. In Section 1, problems associated with the use of this definition will be outlined.
Second, initial criteria critical for further clarification of and changes in the "associates" definition will be outlined.
Third, various situations qualifying for the use of the "associates" definition will be described.
Fourth, approaches to finding a tradeoff vis-à-vis definition of "associates" based on a "contractual" or a binding criterion will be presented.
Fifth, international best practices in applying similar definitions will be considered.
Sixth, approaches to applying the "associates" definition in terms of antimonopoly policy will be proposed.
We will base our analysis on phraseology used in the existing regulatory acts. We also take account of the fact that the new draft law "Concerning Competition Protection" has been subjected to public debate. In view of the latter in the final section we will analyze the draft law provisions relating to associates, changes in the antimonopoly legislation applicable to associates and definition of "collective dominance".
Published on 05 Oct 2005
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