Friday, November 11, 2011
Posted by D. Daniel Sokol
Svetlana AvdashevaNadezhda Goreyko, Institute for Industrial and Market Studies and Russell Pittman, U.S. Department of Justice - Economic Analysis Group, New Economic School (NES) discuss Abuse of Collective Dominance Under the Competition Law of the Russian Federation.
ABSTRACT: In 2006, Russia amended its competition law and added the concepts of “collective dominance” and its abuse. This was seen as an attempt to address the common problem of “conscious parallelism” among firms in concentrated industries. Critics feared that the enforcement of this provision would become tantamount to government regulation of prices. In this paper we examine the enforcement experience to date, looking especially closely at sanctions imposed on firms in the oil industry. Some difficulties and complications experienced in enforcement are analyzed, and some alternative strategies for addressing anticompetitive behavior in concentrated industries discussed.