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EEC Council agreed on changes to Method for calculation and procedure for imposition of penalties for violating competition rules

EEC Council agreed on changes to Method for calculation and procedure for imposition of penalties for violating competition rules

11/23/2020
The adopted amendments are aimed at improving the EAEU legislation in the field of competition as well as clarifying some concepts and mechanisms provided for in the Method.


It bears reminding that according to the Treaty on the Union, the Commission imposes penalties on economic entities for violating general competition rules in transboundary markets in accordance with the Method.


According to Arman Shakkaliev, Member of the Board – EEC Minister in charge of Competition and Antitrust Regulation, "the adopted amendments will create additional conditions for the business community both in terms of minimizing its costs and mitigating its liability".

For example, the concepts of "revenue" and "consolidated revenues" have been clarified. Today, the amount of a penalty for violating competition rules is expressed in Russian rubles and information to calculate the penalty is provided by economic entities in national currencies of the EAEU Member States. The penalty adjustment (calculated in preparation for the meeting of the Commission’s Board) as of the date of the decision adopted by the Commission’s Board in the event of any changes in foreign exchange rates has been enshrined as well.

Furthermore, the amendments allow for voluntary payment of a penalty by the offender before initiating enforcement proceedings and set a deadline for its voluntary payment.

The amendments expand the list of circumstances mitigating liability for violating competition rules as well as indicate the conditions whereby such circumstances as "voluntary termination of violations of general competition rules..." and "voluntary compensation for damages..." can be considered as mitigating factors when calculating a penalty.​