Changes to Russian anti-monopoly law reduce the degree of control over small businesses

The financial threshold that triggers approval from the Russian Federal Anti-monopoly Service (FAS) for economic concentration transactions has been increased.

A Federal Law* has been adopted that amends Federal Law No. 135-FZ “On Protection of Competition” dated 26 July 2006 concerning prior approval of economic concentration transactions by the FAS.

Under the amendments, transactions will be subject to mandatory prior approval by the FAS where the total value of the assets of the acquired company and its group of entities exceeds RUB 800m (EUR 8.8m) according to the latest balance sheets. Under the current version of the law, the threshold is RUB 400m (EUR 4.4m).

However, the thresholds for the total value of the groups entering into the transaction and their total sales revenue for the last calendar year remain unchanged: RUB 7bn (EUR 77m) and RUB 10bn (EUR 110m) respectively.

In addition, amendments address the establishment of a dominant position and the admissibility of other anti-competitive agreements. According to the changes, a business entity cannot be recognised as dominant in the market if its revenue from the sale of goods for the last calendar year does not exceed RUB 800m (EUR 8.8m) except for cases defined in the law. A similar approach has been established for the recognition of agreements concluded between business entities whose revenues do not exceed RUB 800m (EUR 8.8m) per year as admissible.

Thus, the above changes remove transactions and agreements, and the activities of smaller companies and groups, from anti-monopoly control. At the same time, control over the activities of larger market players will remain in place.

The changes will take effect from 28 February 2022.

For further information, please email the authors or your usual contact at CMS Russia.

* In Russian