Baker & McKenzie – CIS, Limited is a member firm of Baker & McKenzie International, a Swiss Verein with member law firms around the world. In accordance with the common terminology used in professional service organisations, reference to a "partner" means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an "office" means an office of any such law firm. © 2014 Baker & McKenzie – CIS, Limited Regional issues and application of the main WTO agreements Competition regulation within the Customs Union Anton Subbot Baker & McKenzie 22 March 2014 International annual forum on WTO hosted by Kaliningrad Technical University

© 2014 Baker & McKenzie – CIS, Limited International organizations –Eurasian Economic Community  Agreement on establishment of Eurasian Economic Community, –Customs Union  Agreement on creation of the unified customs territory and formation of the Customs Union, –Unified Economic Space  Declaration on Eurasian economic integration,

© 2014 Baker & McKenzie – CIS, Limited Hierarchy of governing bodies –Supreme Eurasian Economic Council  Agreement on Eurasian Economic Commission,  Agreement on establishment of Eurasian Economic Community, –Eurasian Economic Commission (“EEC”)  Agreement on Eurasian Economic Commission,  Regulation on the functioning of Eurasian Economic Commission, –Department of Antimonopoly Regulation  Regulation on Department of Antimonopoly Regulation,

© 2014 Baker & McKenzie – CIS, Limited Main sources of rules –Agreement on the Unified Principles and Rules of Competition of (“Agreement”) and …  methodology for assessing conditions of competition  methodology for determining monopolistically high (low) prices  methodology for calculating and imposing fines  procedure for reviewing complaints (materials) about infringements  procedure for conducting an investigation  procedure for considering cases of infringements  functions and structure of the Department of Antimonopoly Regulation  procedure for interactions between EEC and national authorities 4

© 2014 Baker & McKenzie – CIS, Limited Powers of EEC –Investigations  review of complaints  requests for information to companies  requests for information to national authorities  requests for certain procedural acts –Consideration of infringement cases –Imposition of fines 5

© 2014 Baker & McKenzie – CIS, Limited Algorithm of Exercise of ECC Powers –Complaints or materials –Complaint review (30 days) –Investigation ( days) –Infringement case ( days) 6

© 2014 Baker & McKenzie – CIS, Limited Prohibited practices –Anticompetitive agreements –Coordination –Abuse of market dominance –Unfair competition –Non-provision of information 7

© 2014 Baker & McKenzie – CIS, Limited General and specific requirements –Negative effect on a cross-border market  geographic borders cover two of more member states  Anticompetitive agreements  at least two infringers are registered in different member states  Abuse of market dominance  restriction of competition or infringement on individual rights  Unfair competition  the infringer and the competitor, which was harmed, are registered in different member states 8

© 2014 Baker & McKenzie – CIS, Limited Sanctions (in Russian rubles) –Anticompetitive agreements, abuse of market dominance, coordination  for managers up 50K or disqualification for up to 3 years  for companies up to 15% of turnover (for “mono-product” companies up to 3%) –Unfair competition  for managers up to 20K; for companies up to 500K –Non-provision of information  for individuals up to 2.5K; for managers up to 15K  for companies up to 500K 9

© 2014 Baker & McKenzie – CIS, Limited Challenging EEC decisions –The Court of Eurasian Economic Community –Decision of the Court may be appealed to the Appellate Chamber –Decision of the Appellate Chamber (and the Court, if not appealed) is final and not subject to further appeal 10

© 2014 Baker & McKenzie – CIS, Limited The Court of Eurasian Economic Community –Located in Minsk, Belarus –Does not compensate private damages –May give official interpretation –Decision of the Court becomes a part of the Customs Union’s legal foundation 11

Baker & McKenzie has been global since inception. Being global is part of our DNA. Anton Subbot Senior associate Baker & McKenzie - CIS, Limited White Gardens, 10th Floor 9 Lesnaya StreetP: Moscow Baker & McKenzie CIS Limited is a member of Baker & McKenzie International, a Swiss Verein with member law firms around the world. In accordance with the common terminology used in professional service organizations, reference to a “partner” means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an “office” means an office of any such law firm Baker & McKenzie All rights reserved.