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Competition Advocacy – a Soft Power in Competition Policy

Competition Advocacy – a Soft Power in Competition Policy. IRINA KNYAZEVA DOCTOR OF ECONOMICS , PROFESSOR , VICE-PRINCIPAL ON RESEARCH SIBERIAN ACADEMY OF ADMINISTRATIVE SERVICE А LM А TY 2011.

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Competition Advocacy – a Soft Power in Competition Policy

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  1. Competition Advocacy – a Soft Power in Competition Policy IRINA KNYAZEVA DOCTOR OF ECONOMICS, PROFESSOR, VICE-PRINCIPALON RESEARCH SIBERIAN ACADEMY OF ADMINISTRATIVE SERVICE АLMАTY 2011

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

  3. The key aspects and tendencies in antimonopoly regulation – “soft power” sources 1. Liberalisation of antimonopoly regulation : rule of reason takes over the per se rule 2. Competition authorities shift their efforts 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. 4. Regulation of economic concentration becomes less important 5. Competition authorities form consensus based on liberal principles for 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 is more prominent (warnings) in comparison with 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; • Facilitates development of competitive markets; • Restrains anticompetitive conduct; • Reduces the costs of competition enforcement; • Provides public and political support to pro-competitive initiatives; • Increases ability of competition authority as the leading agent of competition advocacy to influence economic processes and the level of trust from the community

  8. The most important objectives of competition advocacy : • Supporting enforcement system by informing market participants about the essence of 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 of the antimonopoly authority will make to detect violations and punish the violators; • Reducing possibilities by the authorities to devise and apply norms that are contrary to the spirit of competition policy.

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

  10. Th main efforts in the field of competition advocacy are geared towards achieving the following goals: • a)procedural justness; • b)ensuring cooperation between the antimonopoly authority and community; • c)developing tools that enable effective advancement of communications; • d)generating support for competition policy and antimonopoly enforcement.

  11. The most important elements of competition advocacy : • The institute of warnings, that must be regulated and meet certain legislative norms and terms. • Leniency programmes for market participants who decided to cooperate with the antimonopoly authority and help exposing anticompetitive agreements (special conditions that provide for relief from liability for participating in competition-restricting agreements)

  12. Competition advocacy in the form of PR-events includes : • Informing community about the work of the antimonopoly authority; • Receiving feed-back regarding activities of the antimonopoly authority; • Conducting a dialogue and taking into account opinions of market participants; • 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 and leadership.

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

  14. Target groups for competition advocacy :

  15. The Programme for Developing Competition in the Russian Federation (2009 -2012) includes measures for: • Antimonopoly regulation, • Protection from anticompetitive impact of the authorities, • Development of competition that expand opportunities and stimulate entrepreneurial activities. Approved by No.691-p Decree of the Government ofthe Russian Federation | of 19th May 2009

  16. The most important tools for competition advocacy are : • Active engagement of regional antimonopoly bodies in law-making activities in the constituent territories of the Russian Federation; • Events — forums, conferences, workshops, briefings by the top officers of the antimonopoly bodies, media publications and appearances; • Publication of specialised journals – currently there are five journals specialising on antimonopoly issues; • Training and educational courses as part of additional educationalprogrammes for advanced qualification and mandatory BA and MA programmes.

  17. Competition advocacy is exercised by the antimonopoly authority in order to: Create conditions of fair competition by expanding cooperation with other government agencies and bodies, business community and academia and Due to increasing awareness of the community about the benefits and advantages of competition, impact upon creating equal rules of the game for economic activities of all market participants, Russian and foreign, and efforts of the antimonopoly authority in this field.

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

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