Guidelines “On the specifics of state antimonopoly control over economic concentration”

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Control over economic concentration (merger control) is one of major areas of antimonopoly regulation along with investigating cases on violating the antimonopoly legislation and issuing warnings and admonitions by the antimonopoly authority. The economic science understands market (economic) concentration as a build-up of economically significant attributes or characteristics in the hands of a particular number of economic entities (units or information carriers). It can be defined as a parameter or an indicator of a state of the market.

Thereupon, pre-emptive machinery aimed at preventing violations and exposing and exercising control over abuse-facilitating conditions is essential.

In accord with the above-described logic, and in view of Article 4 of Federal Law No.135-FZ “On Protection of Competition” of 26.07.2006 (further on referred to as the Competition Law), economic concentration is defined as transactions, other actions that influence or can influence the state of competition.

The main tool to control economic concentration by the antimonopoly authority is the powers to approve or reject a particular transaction (merger) as well as imposing additional structural or conduct conditions (injunctions) upon the merger parties.

That being said, control over economic concentration can be defined as preventative antimonopoly control aimed at avoiding monopolistic activity. The purpose of the Guidelines is to describe the main approaches and summarize the practice of the antimonopoly bodies under such a line of control.