National Antimonopoly Policy in the Republic of Belarus

The rules of competition law of the Republic of Belarus found in the Constitution of the Republic of Belarus, the Code of Administrative Violations of the Republic of Belarus, the Civil Code of the Republic of Belarus, the Belarusian Criminal Code, as well as anti-monopoly legislation, legislation in the field of entrepreneurship and small businesses, investments, banking, standards, protection of consumer rights, advertising, foreign trade activities.

The basis of competition law is the law of the Republic of Belarus "On counteraction to monopolistic activity and competition development" that defines the institutional and legal framework for the prevention, control and suppression of monopolistic activity and unfair competition in order to ensure the necessary conditions for the establishment and effective functioning of commodity markets, the promotion and development of fair competition protect the rights and legitimate interests of consumers. In order to implement the Act created and constantly improved the legal framework of the antimonopoly control and regulation, which regulates the following fundamental questions:

definition of dominant position of economic entities in the commodity markets of the Republic of Belarus;

procedure of forming and conducting the State register of economic entities with dominant position on commodity markets and the State register of natural monopolies

rules of state antimonopoly control over transactions in shares, property shares in the cooperative property (shares), shares in statutory funds of economic entities;

order to harmonize the conditions of the transformation of public, state-owned unitary related to the Republican property and rental companies with dominant position on commodity markets, the open joint stock companies;

organization and conduct inspections on observance of antimonopoly legislation by economic entities dominating on commodity markets;

order of state antimonopoly control over the reorganization of economic entities with dominant position on commodity markets of the Republic of Belarus;

order to identify and prevent anticompetitive agreements (concerted action) pricing;

order to identify monopolistic prices;

procedure for considering requests (applications) to establish compliance with the agreements that restrict competition, the antimonopoly legislation;

order of consideration of applications (appeals) of the violation of antimonopoly legislation, with regard to unfair competition;

the application of measures aimed at elimination of violations of antitrust laws.

National Competition policy aims to limit the monopolistic activity and create healthy competition. Antimonopoly Policy of the Republic contributes to the reduction and elimination of administrative, economic, legal, informational and institutional barriers to market entry of new businesses, achieving the protection of owners' rights and equal competitive conditions for enterprises of all forms of ownership.

As a result of processes of reforming property, de-monopolization of the economy in the Republic formed the commodity markets with a competitive structure. However, some commodity markets by their nature, remain captive. In this regard, should determine the status and role of market monopolies in the monitoring of commodity markets, as well as appropriate methods of state antimonopoly regulation and control over their activities and behavior in commodity markets.

The regulation of natural monopolies will be implemented by a gradual decrease in the number of commodity markets, which recognizes the existence of natural monopoly, encouraging competition, entrepreneurship support, removing barriers to market entry for new manufacturers.

In those areas where for technological reasons, the objective remains the state of natural monopoly, and possible competition would be destructive, should be imposed special rigid regulatory restrictions on pricing, volume and quality of service, conditions of service, rules of consumption.
One of the critical elements of competition policy is to ensure control over economic concentration. The base of state control over economic concentration are principles such as unity of economic space, free movement of goods, services and funds, support for competition, avoidance of activities aimed at monopolization and unfair competition. As part of overcoming the concentration of production the number of economic actors of the market should be close to saturation level and not be a constraint for the development of market relations.

The present stage of economic development in new ways makes the problem of assessing the economic concentration in the establishment of economic and financial-industrial groups, holdings and other associations of economic entities. National Competition policy should contribute to such trends in the economic concentration, which will have a positive impact on the competitiveness of domestic producers. Adjustable economic concentration can be considered as one element of the government's economic strategy through which to mobilize the existing industrial capacity and to ensure that import substitution in the domestic market and the specific competitive advantages of domestic products in foreign markets.

An important and topical area of regulation of relations in competitive markets is the prevention and suppression of unfair competition. The need for development of the activity of the antimonopoly authority is primarily due to construction in the Republic of socially oriented market economy, in which one of the important place belongs to the formation of a civilized and competitive environment. The aim of public policy in this direction is to develop a civilized and fair business practices, good to market goods and services.

On the basis of the changed economic environment, the basic direction of antitrust policy should be narrowing the scope of direct state regulation of prices of goods (works, services) monopoly organizations based on a differentiated approach to commodity markets and various groups of producers and the gradual transition from price regulation to a system of antitrust regulation and control.

One of antitrust policy is to work to create conditions for the elimination of abusing the monopoly position of business entities exempted from price control. There remains the need for regulation of prices (tariffs) for products, providing national, food and environmental safety.
2. On the verification of compliance with the antimonopoly legislation in 2008

In order to monitor compliance with the antimonopoly legislation, including in parts of unfair competition, in 2008:

Ministry of Economy at the national level, reviewed more than 20 complaints of economic entities and natural persons;

regional executive committees of the economy (of the Minsk City Executive Committee) and the Office of the pricing policy of the Brest Regional Executive Committee at the local level - more than 110 letters and petitions and conducted 44 inspection.

Established violations of the Law of the Republic of Belarus "On counteraction to monopolistic activity and competition development":

at the national level - 10 violations of economic entities;

at the local level - 27 violations of economic entities and local authorities.

For all identified violations taken in accordance with applicable law.

As preventive measures aimed at preventing the creation of monopolistic structures, implemented state antimonopoly control over economic concentration, namely, agreed:

transactions in shares:

at the national level - 20;

at the local level-58;

reorganization of economic entities:

at the national level 21 the business entity, issued 19 positive opinions;

at the local level - 69;

conditions of the transformation of a business entity in the public company:

at the national level - 5;

at the local level - 19;

establishment of associations:

at the national level, -6;

at the local level -1;

creation of state production associations:

at the national level - 3;

at the local level - 2.

The formation and maintenance of the State register of economic entities with dominant position on commodity markets, the analysis of commodity markets to confirm or loss of economic entities of their dominant position.
at the national level - 43;

at the local level - 70.

The results of this analysis established the fact of dominant position and are included in the Register of economic entities:

at the national level - 8;

local - 10.

Also lost a dominant position on commodity markets and are excluded from the Register of economic entities:

at the national level - 9;

at the local level - 108.
In violation of the principles of good faith and reasonableness, acts of trademark registration using someone else's intellectual work, aimed at excluding competitors from the market. In this regard, the decisions taken by the competition authority to curb the actions of trademark owners in connection with their registration and restricting competition, formed the basis of case law.

In 2009, the High Court of Intellectual Property High Court of the Republic of Belarus were considered two complaints of physical and legal persons on the pricing policy of the Department of the Ministry of Economy's decision-making board of the Department's recognition of action relating to the registration of trademarks, unfair competition. The Trial Chamber has fully confirmed the validity of decisions of the Department of the pricing policy of the Ministry of Economy that the owners of the registration and use of trademarks contrary to the requirements of good faith and reasonableness, the Law of the Republic of Belarus "On counteraction to monopolistic activity and competition development" and are unfair competition.

Consideration of issues related to violation of the antimonopoly legislation, including in part to avoid unfair competition, pricing policies implemented by the Department of the Ministry of Economy, in accordance with the Regulations on the Department of the pricing policy adopted by the Council of Ministers of the Republic of Belarus of July 29, 2006 № 967 .

Department of pricing policy for considering applications for businesses of unfair competition, guided by the law of the Republic of Belarus "On counteraction to monopolistic activity and competition development" (hereinafter - Law), and the procedure established by the Regulations on the consideration of applications (appeals) of the violation of antimonopoly legislation in the part of unfair competition, approved by Decree of the Ministry of Economy of the Republic of Belarus of 17.04.2006 № 61 (hereinafter - Regulations).
With respect to intellectual property rights, the scope of the Act apply to relations arising out of trademark protection only in cases where the rights associated with these relations, using their holders to restrict competition (subsection 2 of Article 3 of the Act).

In accordance with Article 14.1 of the Act, any action to restrict or eliminate competition by violating the rights of other economic entities on free competition, as well as violating the rights and legitimate interests of consumers - unfair competition - are not allowed.

According to Article 1 of the Act under the "unfair competition" means any efforts to acquire the benefits of entrepreneurial activity of business entities that are contrary to the Act, the requirements of good faith and reasonableness, and may cause or causes damage to other economic actors - competitors or harm their business reputation.

Thus, only a combination of three signs of unfair competition:

direction for the entity to acquire the benefits of entrepreneurial activity;

contrary to existing entity requirements of the Act or the requirements of good faith and reasonableness;

Action entity's ability to inflict losses on other economic actors - competitors or harm their business reputation,

is sufficient for the Department's pricing policy, in due course, the fact of unfair competition. An essential condition is the existence between economic entities of competitive relations in the same product market within the same geographical boundaries.

However, in practice, when applying lacks not only evidence of illegal acts, as well as the aggregate of unfair competition, but also evidence of a competitive relationship between the applicant and the economic entity in respect of the complaint.

In addition, attached to the application documents are often not presented in original or duly certified copies, without specifying the information constituting a commercial secret entity, as required by the Regulations set the order.

In connection with it, consideration of these statements in some cases not possible, and gathering evidence of violations of the antimonopoly law, postpones deadlines adjudication.

On international cooperation in the field of competition and antitrust policy

In the course of the XXIX Meeting of Interstate Council on Antimonopoly Policy (ICAP) June 17 - June 18, 2009 (Kyrgyzstan, Bishkek), in accordance with paragraph 9, the meeting agenda to consider the establishment of the CIS association of lawyers and economists involved in competition policy .

June 17, 2009 held a constituent assembly of the Association of Lawyers and Economists on the development of competition in the CIS.

These associations created to address the following issues:

formation of an effective practice of antimonopoly legislation in cooperation with the antimonopoly authorities of CIS countries and ICAP;

participate in the formation of effective public policies for the protection and promotion of competition;

facilitating constructive dialogue between business and antitrust authorities of CIS countries on competition issues;

participate in the rulemaking on competition;

interaction of competition with the European Commission, the International Competition Network (ICN), national organizations in the field of competition law, the U.S., Europe and other countries of the world;

analysis and use of international experience in competition matters.

Background of the Association:

25 - June 27, 2008 in St. Petersburg at the Third Forum of law firms in the CIS head of the Federal Antimonopoly Service of Russia IY Artemev took the initiative to strengthen the participation of the legal community in the activities of ICAP, ICAP in creating an independent expert on the type of union, non-commercial partnership "Promoting Competition, created in 2007 under the auspices of the Federal Antimonopoly Service of Russia;

At ICAP meeting, held in Astana on 1 - 2 October 2008, all countries had supported the establishment of the CIS expert associations of lawyers and economists involved in competition policy, the type of NP "Promoting Competition".