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Commission's powers to prevent competition violations in transboundary markets assessed

Commission's powers to prevent competition violations in transboundary markets assessed

11/23/2020

 The Eurasian Economic Commission’s Council approved at the meeting held on November 23 a Report drafted by the EEC Antitrust Unit on applying Criteria for classifying the commodity market as transboundary one.


The document covering the period from 2015 to 2019 inclusive contains outcomes of the Commission's law enforcement practice and analyses all powers of the supranational authority to prevent violations of the general competition rules in the EAEU transboundary markets.

The Report has enabled revealing certain gaps in the Criteria provisions and the EAEU legal framework. The identified problems include the lack of the Commission’s powers to prevent violations committed by foreign companies in terms of anti-competitive coordination of economic activities as well as the lack of information on the course of investigations on materials submitted by the Commission to the Union countries’ competition agencies.

The Commission intends to empower the EEC with respect to third-country entities as part of its efforts to improve the Union’s legal framework.

Furthermore, the Report expresses the Member States’ expectation to begin a discussion on the sufficiency of the Commission's powers to impose bans on abuse of a dominant position.

The draft Report was reviewed by the Union countries’ antitrust and competition authorities as well as the Member States’ authorized authorities responsible for interaction with the EEC.

The Council has also decided to analyze law enforcement practice on suppressing violations of general competition rules in the EAEU transboundary markets from 2020 to 2022.

For reference
The Criteria for classifying the market as transboundary one were approved by Decision No. 29 of the Supreme Eurasian Economic Council dated December 19, 2012. For instance, a market is considered to be a transboundary one if the geographical borders of the commodity market cover the territories of two or more Member States. On May 22, 2015, after enacting the Agreement on Protecting Confidential Information, the Commission was conferred antitrust powers in the EAEU countries’ transboundary markets.​