Validity extended of antitrust law exceptions for certain categories of agreement

21.05.2014

Legal Update No. 463, 21 May 2014

Goltsblat BLP advises that the Government of the Russian Federation (RF) has extended the validity of antitrust law exceptions for certain categories of agreement, without changing their content.

A separate resolution of the Government of the Russian Federation, No. 385 of 29 April 2014, has extended until 31 July 2019 the general exceptions on observance of which “vertical” agreements may not be recognised as contravening the antitrust legislation.

The Government of the Russian Federation is granted this right by Part 2, article 13 of the Federal Law of 26 July 2006 “On Protection of Competition”. If commercial entities conclude a “vertical” agreement and the market share of any of them exceeds 20%, it must be verified that the “vertical” agreement is permissible on the terms established by the given RF Government resolution (with the exception of franchise agreements).

The given legal act also extends until 31 July 2019 the conditions that agreements between commercial entities on joint scientific research and joint use of the scientific and (or) scientific and technical results obtained need to meet in order not to be recognised as contravening the antitrust legislation.

In addition, RF Government resolution No. 594 dated 29 April 2014 extends, until 18 May 2017, the permissibility conditions for agreements concluded between credit and insurance institutions. Depending on their market share, before concluding an agreement such commercial entities need to make sure that the given agreement meets the conditions stipulated in the relevant RF Government resolution.

For information, the RF Government resolution dated 5 July 2010 “On permissible agreements on joint insurance or reinsurance concluded between insurers operating on the same market”, which establishes the terms to be met by agreements between the relevant commercial entities in order to be permissible, is in force until 20 July 2020.

Consequently, the agreement permissibility conditions established by the RF Government remain in effect:

  • for “vertical” agreements: until 31 July 2019;
  • for agreements on joint scientific research and joint use of the scientific and (or) scientific and technical results obtained: until 31 July 2019;
  • for agreements concluded between credit and insurance institutions: until 19 May 2017;
  • for agreements concluded between insurers operating on the same goods market on joint insurance or reinsurance: until 20 July 2020.

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