“IMMUNITY” to antimonopoly control was established for small and medium business

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The position of an individual entrepreneur or a small enterprise cannot be deemed dominant, if it was established only by physical entities and the revenue does not exceed 400 mln rubles a year. Such amendments contain in the federal law No. 264-ФЗ “«On introduction of amendments to the Federal Law “On Protection of Competition” and separate legal acts of the Russian Federation”. The norms of the document do not apply to financial organizations and also natural monopoly entities.

The agreements of companies working on a variety of markets will not be recognized as anticompetitive, if their annual turnover is less than 400 mln roubles. As the participants of the working group of Agency of Strategic Initiatives on competition development assume, such agreements do not influence the competition in any way and cannot limit it, this measure will allow the Federal Antimonopoly Service to concentrate on control of large-scale cartel agreements on the market.

Legal limitations for distribution networks will no longer apply to “networks” consisting of two vendor kiosks.  

Immunity to antimonopoly articles of the law on basics of state regulation of commercial activity in the Russian Federation will also apply to small and medium business entities with annual revenue not exceeding 400 mln roubles.

From 250 to 400 mln roubles the asset limit increases for the purpose of merger control. It means, that for acquisition of assets less than 400 mln roubles the entrepreneur no longer needs a preliminary approval of the Federal Antimonopoly Service.  Experts say, that this will increase the flexibility of medium business merges.

The law requires the necessity of approval of the prosecution authorities concerning unscheduled inspections of small and medium business entities. The exceptions will be made for natural monopoly entities. This norm will allow to terminate the practice of ordered inspections and to increase their reasonability

“The adopted law has a vital and exceptionally positive meaning for business development, - remarks Aleksey Ulianov, participant of the working group of the Agency for Strategic Initiatives “Development of competition and improvement of antimonopoly policy”, antimonopoly expert of the Business Russia. – The excessive barriers and risks of sanctions are eliminated for small business, the scope of its actions expands, and that, without a doubt, will promote competitiveness and contribute to overcoming of negative economic tendencies. The law will allow the Federal Antimonopoly Service to concentrate on major cases and investigations, that will improve the competitive environment”. At the same time the expert emphasizes, that after monitoring of this law application it is necessary to continue work on expansion of the immunity for all subjects of small and medium business. In particular, it refers to recognition of all types of agreements between small and medium business entities and companies with small share on the market admissible. Exception shall be made for tender fix-ups. The problem of excessive antimonopoly prosecution of small and medium business entities, that were often accused in «monopoly» within the limits of a carwash, bakery or a shopping center, was in the focus of attention on meetings of workgroup of Agency for Strategic Initiatives on development of competition and improvement of antimonopoly policy. As work group members say, it was managed not only to implement the “road map”, but to go much further in eliminating excessive barriers and entrepreneurial risks. In particular, the “fourth antimonopoly package” was improved and adopted in a liberalizing version, the criminal category for entrepreneurs according to article 178 of the Criminal Code of the Russian Federation was cancelled.

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