In July 2013, the common Customs Union
(CU) law On Competition was issued
By the middle of the next year, all
Customs Union member-states will comply with the Model Law On Competition. The
world practice knows no cases when the antitrust agencies of different states
apply the same principles. In his interview to BNews.kz, the Member of the
Board (Minister) for Competition and Antirust Regulation of the Eurasian
Economic Commission (EEC) Nurlan Aldabergenov told about the progress in
harmonization of the legislative frameworks of Kazakhstan, Russia and Belarus.
- Mr. Aldabergenov, what work
precedes the development of the Customs Union Antirust Code, and why is its
enactment expected not earlier than 2015?
- This year, on the first of
January, the Common Economic Space (CES) was launched. Currently, we have no
borders, and goods move freely. However, all competition laws existing in the
three states remained unchanged, just as before, when the three states were
closed. And now, approximation of competition laws to ensure a convenient
environment for business is our primary goal.
The first stage of harmonization
includes the approximation of competition laws. We are currently working on
this issue with the three parliaments and with the three governments. The
government of Belarus
had considered the draft law On Combating Monopolistic Activity and
Promoting Competition, and it was submitted to the Parliament. The draft
law of Kazakhstan
On Competition is under consideration by the Majilis of the Parliament
of Kazakhstan, at the stage of its first reading. We proposed our amendments,
reviewed it with the deputies and held round tables discussions. Currently, the
deputies are working on it, at the final stage. In Russia, the draft law On
Protection of Competition is under consideration at the federal level.
Since laws are under consideration, the deputies are entitled to propose
amendments.
We should approximate the
legislative frameworks of the three states by the next July. We have limited
deadlines, which are stipulated by the agreement on the principles and rules of
competitions and have been ratified by the parliaments. We strictly follow the
schedule, and we should achieve complete harmonization.
Adoption of CES laws and
regulations, which are needed for the Eurasian Economic Commission to be able
to prevent violations of the competition rules in the cross border markets at
the supranational level, will be the next stage.
Besides, a model law on competition
shall be drafted, and then the issue of adoption of the CES Competition
(Antitrust) Code shall be addressed.
- How far have Kazakhstan, Russia
and Belarus moved away from each other in developing appropriate policy over
the years of independence?
- The laws of our states are very
close. There are no significant differences. We have studied this issue, in
what way the competition laws should be modified to align them with the common
principles and rules. For example, while Belarus
and Kazakhstan comply with
the principle of equal application of antitrust laws, in Russia it is not directly reflected
in its draft law.
Or let’s take the principle of
inadmissibility of anticompetitive actions by public authorities. The draft law
of Belarus
contains no prohibition against agreements between other public authorities or
organizations exercising their functions, or between them and economic agents.
We recommended specifying such measures to make steps aimed at preventing,
identifying and restraining actions (omission) by public authorities more effective.
The next field includes eliminating
administrative barriers hindering access to the markets of Belarus, Kazakhstan
and Russia, in the context of free movement of goods in the Customs Union. A
mechanism has already been developed in this field.
The existing issues can be addressed
through the EEC, but, of course, this work shall be done by the Council of the
Commission.
The EEC has 9 ministers, each
responsible for a specific area. The Eurasian Commission equally protects all
the three markets. We approach them in the same way. However, the Council of
the Commission, comprised of the Vice Prime-Ministers, protects the interests
of every individual country; i.e. Kazakh Vice Prime-Minister protects the
interests of Kazakhstan, and
Russian Vice Prime Minister protects the interests of Russia, and Belarusian Vice Prime-Minister
protests the interests of Belarus.
The Eurasian Economic Commission is the executive body that treats all of them
equally.
These are the differences between
the Commission and the Council.
Therefore, to this extent, the
Council submits its proposals and points out the areas where administrative
barriers exist in this or that state. Assume that Russia imposed an administrative
barrier in the field of government procurements. Since the goal in this field
is to achieve free tender-based procurements in the three states, the Council
of the Commission issues instructions to us and we take necessary actions.
- How important is the development
of the common law On Competition for the three CU member-states? The
three states have totally different economies. The states differ in terms of
both their territory and structure of industries. Will it not result in a
situation of total disagreement with every state trying to promote its own interests?
- You asked a good question. I have
already been asked it, and it was discussed with our foreign partners. We
consulted with the representatives from the world’s leading competition
authorities of France, Austria, China,
South Korea, and the United
Kingdom.
What is the current situation in
Europe? 27 states joined the European Union. Antitrust regulation is among
their priorities. They dream of, but are unable to achieve a model law. There,
they really have a total disagreement.
When we raised this issue and asked
whether such a situation was possible in our case, we analyzed the situation.
What do we have at the moment? Firstly, as I have already said, our legislative
frameworks differ slightly. And we will eliminate these slight differences at
the first stage of harmonization.
Our foreign partners keep saying:
“Of course, it’s easier in your case. You have one language, one background and
one history. You originate from the previous Union
and you have the same concepts.”
As regards our economies, they are
rather developed in all the three states. Kazakhstan,
Russia and Belarus are rather strong in this
regard. Finally, having studied the situation, we concluded that we would be
able to adopt that law.
I should say, though, that while Europe
sets the same goal, they have different countries. Germany
has a history of its own, France
has a background of its own, and the United Kingdom also has its unique
history, and it’s difficult to unite them. So, in this respect, they are also
looking at us, at what we are doing now.
For example, we talked to our peers
from one of the strongest competition agencies of the world, the Korean agency.
They say: “We understand, and we, as well as all antitrust agencies of the
world also would like to approximate. Because we have one language; it’s a
language of antitrust regulation. Cartels, arrangements and abuse exist
everywhere. Unfair competition and violations occur everywhere, and they all
have similar nature, i.e. the legal frameworks in the field of competition are
similar in all countries all over the world, and that’s why they say that we
have one language, but we are totally different to be able to approximate. In
your case, it’s easier.”
So, this model law is a huge
breakthrough in the field of competition policy comparing to the communities,
in which we are members. Accordingly, we have an excellent foundation, and we
will exert every effort to issue the model law On Competition; it is a
cornerstone for us.
No similar law On Competition exists
in the world. The deadline for its adoption is July 2013. It is expected to be
signed by the heads of the three states. It will be voluntary. Since it will
signed by the Presidents of the three states, it will constitute an assignment
for all public authorities and for the Parliaments to align their laws and
regulations with the model law.
This model law shall contain a
prohibition against anticompetitive agreements, abuse of a dominant position or
unfair competition. It is a crucial instrument. First, it shall reflect the
interests of the three states. So, the law is discussed with the general
public, scientific communities and entrepreneurs.
Besides,
we have a goal of drafting and issuing the common Antitrust Code within two or
three years after the adoption of the model law. It is considered to be the
ultimate form of integration of the three states in the field of competition
policy. Of course, it is an ambitious goal. The model law itself will have
about 47 articles. It will be a large volume, and the Antitrust Code, of
course, will be even bigger. Nevertheless, we must advance and try, and we also
must understand that the boundaries are open, with goods moving freely. So,
establishing common competition rules for our businesses and people is all we
need to do.
- Thank you for a comprehensive
conversation. We wish you to achieve all your goals in the coning year 2013.
Aizhan BEKTASOVA