Press centre News

13
November
2019

VEGAS LEX law firm marks redlines for metals market

On 11 November 2019, the International Conference "The Russian Market of Metals" was held. Anastasiya Cheredova, a senior associate of Commercial practice at VEGAS LEX, delivered a speech at the conference. The expert spoke of the main restraints of the free market conduct imposed on large companies in the sector, which should be taken into consideration in the cases of making management decisions and planning development of the companies.

"There is a fairly large number of cases when the market behavior of a company piques FAS Russia’s interest, – Anastasiya said – Companies become more and more prone to abuse of antitrust mechanisms as quick remedies. The increased attention of the regulator originates from price setting within the markets with low levels of competition, when a price notably exceeds the amount of required production costs and the standard of profits. Control over procurement activities is increasing, and the instruments for revealing and investigation of anti-competitive agreements are developing". 

The expert underlined that dominant companies, whose share in the market is over 35%, i.e. monopolists in certain market segments, are first to be at risk. Their contractual relationships with partners are assessed in terms of touting for business, refusal to conclude contracts, differentiation between business terms. Practice of undertakings, which do not have a competitive selection procedure, standard contract forms and have a pool of "their own" convenient suppliers or use the "exclusive consumer" – "exclusive supplier" formula, raises questions. 

According to Anastacia, the greater attention is paid to competitors’ interaction that may seem to have signs of price fixing. Legislation also provides for criminal liability for such a breach. 

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You can learn about antitrust and competition-linked activities of VEGAS LEX here

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