3 August 2022
The Market Without Fluctuation | Commentary by Anastasia Yaremchuk for RG

The Federal Antimonopoly Service (FAS) has reduced the period for issuing warnings to one day. The new rules will also apply to public unsubstantiated forecasts of price increases.

Previously, the deadline for issuing warnings was 10 days. The department believes that the reduction of this period will allow for the quick suppression of risks of violations, including those related to pricing in socially significant commodity markets.

«This response measure is used for public statements that may entail a violation of antitrust law, such as concerted actions,» the FAS noted.

Public forecasts can generate a surge in demand, which provokes a shortage of goods.

The department emphasises that it will issue warnings only to officials, whose statements may have a negative impact on the market. “Other market participants may regard such a statement as a guide to action, which may lead to an increase in prices for consumers even if there are no economically justified reasons for this,” the antimonopoly department explained.

Anastasia Yaremchuk, a lawyer in the competition law practice at EPAM Law, notes that public forecasts can influence not only business actions but also consumer behavior, creating an excessive demand, which can lead to a shortage of goods and, as a result, to an increase in prices.

According to Yaremchuk, the institution of warnings becomes most relevant during crises and cites the situation during the pandemic as an example. “Logistics chains were disrupted, production was partially suspended, it was difficult to accurately predict the supply of goods, their availability, and cost. Under those conditions, any public statements were taken literally by market participants, and therefore negative consequences could come quickly,” the expert explained. […]

Mikhail Zagainov, https://rg.ru/amp/2022/08/03/rynok-bez-kolebanij.html