1. IRINA KNYAZEVA DOCTOR OF ECONOMICS PROFESSOR VICE-PRINCIPAL HEAD OF RESEARCH SIBERIAN INSTITUTE OF ADMINISTRATIVE SERVICES SIBIU, ROMANIA 2013 Competition Advocacy – Soft Power in Competition Policy

2. Soft power – ability to achieve the desirable outcome through the voluntary participation of allies, rather than coercion or payments Joseph S. Nye Jr., professor, The Head of Harvard School of Government, 2004

3. The key aspects and tendencies in antimonopoly regulation – sources of ) “soft power” 1. Liberalization of antimonopoly regulation : the rule of reason takes over the rule per se 2. Competition authorities shift their efforts by focusing on the most serious violations of competition law 3. Increasing importance of measures aimed at stimulating desirable conduct of market participants (efficiency and innovations). Conduct methods of regulation encourage more efficient companies to strengthen their market positions

4. The key aspects and tendencies in antimonopoly regulation – sources of ) “soft power” 4. Regulation of economic concentration becomes less important 5. Competition authorities form consensus based on liberal principles by applying international standards of analysis, methods for investigating violations, legal norms and enforcement practices 6. Competition advocacy is becoming increasingly important. The role of preventive deterrence of anticompetitive actions via warnings is more prominent in comparison with the regular antimonopoly responses (post-factum measures)

5. Timothy J. Muris М, the Chairman of the US Federal Trade Commission (2001-2004) Competition advocacy is - a type of activity exercised by antimonopoly authorities to strengthen competitive environment without enforcement measures, through developing active cooperation with other government bodies and increasing the degree of understanding of the benefits of competition by the community (“Protection and competition policy” First Conference of the International Competition Network, 2002, Italy).

6. Competition policy – apart from regulatory acts, rules and procedures, must rely on understanding of its goals and objectives by community, market participants and the government

7. Effective competition advocacy: Strengthens competition culture Strengthens competition culture Facilitates the development of competitive markets Facilitates the development of competitive markets Restrains the anticompetitive conduct Restrains the anticompetitive conduct Reduces the costs of competition enforcement Reduces the costs of competition enforcement Provides public and political support for pro- competitive initiatives Provides public and political support for pro- competitive initiatives Increases the ability of competition authority as the leading agent of competition advocacy to influence economic processes and the level of trust by the community Increases the ability of competition authority as the leading agent of competition advocacy to influence economic processes and the level of trust by the community

8. The most important objectives of competition advocacy : Supporting enforcement system by informing market participants about the essence of the competition norms and standards, which enhances their willingness to use competition law in order to protect their rights Supporting enforcement system by informing market participants about the essence of the competition norms and standards, which enhances their willingness to use competition law in order to protect their rights Increasing awareness of potential violators not only as to what kinds of actions are legal or illegal, but also what efforts will the antimonopoly authority undertake to detect violations and penalize the violators Increasing awareness of potential violators not only as to what kinds of actions are legal or illegal, but also what efforts will the antimonopoly authority undertake to detect violations and penalize the violators Reducing likelihood by the authorities to devise and apply norms that are contrary to the spirit of competition policy Reducing likelihood by the authorities to devise and apply norms that are contrary to the spirit of competition policy

9. Competition Advocacy - Determined activities by the competition authorities aimed at : developing mutual understanding between the authority, developing mutual understanding between the authority, community and business, which comprise of various communication, community and business, which comprise of various communication, publicity and awareness-raising actions to inform market participants about their rights and responsibilities towards the market and society publicity and awareness-raising actions to inform market participants about their rights and responsibilities towards the market and society

10. The main tasks, which decides competition advocacy: ) procedural justice a) procedural justice b) ensuring cooperation between the antimonopoly authority and community b) ensuring cooperation between the antimonopoly authority and community c) developing tools that enable effective advancement of communications c) developing tools that enable effective advancement of communications d) generating support for competition policy and antimonopoly enforcement d) generating support for competition policy and antimonopoly enforcement

11. Procedural justice (the most important elements of competition advocacy) Regulatory amendments and the consolidation of the policy of leniency The system of warnings, that must be regulated to meet certain legislative norms The system of warnings, that must be regulated to meet certain legislative norms Special leniency programmes for market participants who decided to cooperate with the antimonopoly authority and to assist in exposing anticompetitive agreements (special conditions that provide for relief from liability for participating in competition-restricting agreements) Special leniency programmes for market participants who decided to cooperate with the antimonopoly authority and to assist in exposing anticompetitive agreements (special conditions that provide for relief from liability for participating in competition-restricting agreements) the application, notification; the application, notification; public statement ; public statement ;

12. Ensuring Ensuring cooperation between the competition authority and the state agencies, businesses and the broader public: public events (conferences, articles, seminars, official reports, etc.) industry reports and sector surveys Training and educational courses as part of additional educational programmers for advanced qualification and obligatory for some BA and MA programmers) collaboration with universities, the design of educational programs (Training and educational courses as part of additional educational programmers for advanced qualification and obligatory for some BA and MA programmers) briefings to parliamentarians and government officials

13. Creation of competitive culture: publications in the mass media, trade journals website, the Internet, Twitter and other social networks press releases participation in public debates lectures, panel discussions, symposiums Developing tools that enable effective advancement of communications

14. Creating support for competition policy and antimonopoly enforcement Legislative support: official comments on legislation consultancy and recommendations legal monitoring protocols of cooperation with the authorities International cooperation and the implementation of standards inclusion of standards to ensure the safeguarding of competition in the related industries

15. Target groups for competition advocacy : The authorities Preventing the adoption of anticompetitive norms and anticompetitive actions by the authorities Initiating joint law- making efforts Market participants Preventing violations Reducing administrative barriers Developing transparent policy Society and consumers Developing the culture of competitionDeveloping the culture of competition Informing about advantages of competitionInforming about advantages of competition

16. Communication tools in the competition advocacy Publications Publication of specialized journalsPublication of specialized journals Publication in the mass media, trade journals Events Forums, conferences, workshops, briefingsForums, conferences, workshops, briefings Public relations Conducting a dialogue and taking into account opinions of market participants Activities industry specific expert boards Information portal in social networks Promotion of competition into public consciousness Educational and academic/research activities Representation in state authorities

17. Competition advocacy in the form of Public relations and PR-events includes : Informing community about the work of the antimonopoly authority Informing community about the work of the antimonopoly authority Receiving feed-back regarding activities of the antimonopoly authority Receiving feed-back regarding activities of the antimonopoly authority Conducting a dialogue and taking into account opinions of market participants Conducting a dialogue and taking into account opinions of market participants Attracting attention of the community to the problems of developing competition Attracting attention of the community to the problems of developing competition Raising the status of the antimonopoly authority and the level of recognised competence of the members of staff Raising the status of the antimonopoly authority and the level of recognised competence of the members of staff

18. Competition advocacy enables : 1. Engage experts, operating on the market, in achievingthe task of developing competition 2. Report to the community about the work of the antimonopoly authority as a body that spends taxpayers’ money 3. Create clear and equal rules of the game in the market for both Russian and foreing economic entities 4. Enhance political and legal culture of citizens 5. Form public opinion and support for the initiatives put forward by the antimonopoly authority

19. Who will win? Healthy competition? Can fight by the rules and win, so they must be actively advocate and promote

20. THANK YOU FOR YOUR ATTENTION! irknyazeva@yandex.ru