IRINA KNYAZEVA

DOCTOR OF ECONOMICS PROFESSOR

VICE-PRINCIPAL HEAD OF RESEARCHSIBERIAN INSTITUTE OF ADMINISTRATIVE

SERVICES

SIBIU, ROMANIA 2013

Competition Advocacy Competition Advocacy – – Soft Power in Competition Policy Soft Power in Competition Policy

Soft power Soft power – – ability to achieve the desirable ability to achieve the desirable outcome through the voluntary participation of outcome through the voluntary participation of

alliesallies, , rather thanrather than coercion or paymentscoercion or payments

Joseph S.Joseph S. Nye Jr.Nye Jr.,, professorprofessor,,

The Head of Harvard School of GovernmentThe Head of Harvard School of Government, 2004, 2004

The key aspects and tendencies in The key aspects and tendencies in antimonopoly regulation antimonopoly regulation – – sources ofsources of) ) “soft “soft

power” power”

1. Liberalization of antimonopoly regulation :

the rule of reason takes over the rule per se

2. Competition authorities shift their efforts byfocusing 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

The key aspects and tendencies in antimonopoly The key aspects and tendencies in antimonopoly regulation regulation – – sources ofsources of) ) “soft power” “soft power”

4. Regulation of economic concentration becomes less important

5. Competition authorities form consensus based on liberal principles by 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 via warnings is more prominent in comparison with the regular antimonopoly responses (post-factum measures)

Timothy J. Muris Timothy J. Muris М, М, the Chairman of the US Federal the Chairman of the US Federal Trade Commission Trade Commission (2001-2004) (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)

.

Competition policy –Competition policy –

apart from regulatory acts, apart from regulatory acts, rules and procedures, rules and procedures, must must rely on understanding rely on understanding of its goals and of its goals and objectives by objectives by community, community, market participants market participants and the government and the government

Effective competition advocacyEffective competition advocacy: :

Strengthens competition cultureStrengthens competition culture Facilitates Facilitates the the development of competitive development of competitive

marketsmarkets

Restrains the anticompetitive conductRestrains the anticompetitive conduct Reduces the costs of competition enforcementReduces the costs of competition enforcement

Provides public and political support for pro-Provides public and political support for pro-competitive initiativescompetitive initiatives

Increases the ability of competition authority as Increases the ability of competition authority as the leading agent of competition advocacy to the leading agent of competition advocacy to influence economic processes and the level of influence economic processes and the level of trust by the communitytrust by the community

The most important objectives of The most important objectives of competition advocacy competition advocacy ::

Supporting enforcement system by informing market Supporting enforcement system by informing market participants about the essence of the competition participants about the essence of the competition norms and standards, which enhances their willingness norms and standards, which enhances their willingness to use competition law in order to protect their rightsto use competition law in order to protect their rights

Increasing awareness of potential violators not only as Increasing awareness of potential violators not only as to what kinds of actions are legal or illegal, but also to what kinds of actions are legal or illegal, but also what efforts will the antimonopoly authority undertake what efforts will the antimonopoly authority undertake to detect violations and penalize the violatorsto detect violations and penalize the violators

Reducing likelihood by the authorities to devise and Reducing likelihood by the authorities to devise and apply norms that are contrary to the spirit of apply norms that are contrary to the spirit of competition policycompetition policy

Competition Advocacy Competition Advocacy --Determined activities by the competition Determined activities by the competition authorities aimed at authorities aimed at ::developing mutual understanding developing mutual understanding between the authority,between the authority, community and business, which community and business, which comprise of various communication, comprise of various communication, publicity and awareness-raising publicity and awareness-raising actions to inform market participants actions to inform market participants about their rights and responsibilities about their rights and responsibilities towards the market and societytowards the market and society

The main tasks, which decides competition The main tasks, which decides competition advocacyadvocacy::

a) ) procedural justiceprocedural justicebb) ) ensuring cooperation between the ensuring cooperation between the

antimonopoly authority and communityantimonopoly authority and communitycc) ) developing tools that enable effective developing tools that enable effective

advancement of communicationsadvancement of communicationsdd) ) generating support for competition generating support for competition

policy and antimonopoly enforcementpolicy and antimonopoly enforcement

Procedural justiceProcedural justice ( (the most important elements of the most important elements of competition advocacycompetition advocacy) )

Regulatory amendments and the consolidation of the Regulatory amendments and the consolidation of the policy of leniencypolicy of leniency

TheThe system of warnings system of warnings, that must be regulated to meet , that must be regulated to meet certain legislative normscertain legislative norms

Special leniency programmes for market participants Special leniency programmes for market participants who decided to cooperate with the antimonopoly who decided to cooperate with the antimonopoly authority and to assist in exposing anticompetitive authority and to assist in exposing anticompetitive agreements agreements ((special conditions that provide for relief from liability for special conditions that provide for relief from liability for participating in competition-restricting agreements)participating in competition-restricting agreements)

the application, notification;the application, notification;

public statementpublic statement;;

EEnsuring nsuring cooperation between the competition authority and the state agencies, businesses and the broader public:

public events (conferences, articles, seminars, official reports, etc.)

industry reports and sector surveys

collaboration with universities, the design of educational programs (Training Training and educational courses as part of additional educationaland educational courses as part of additional educational programmers for advanced qualification and obligatory for programmers for advanced qualification and obligatory for somesome BA and MA programmers)BA and MA programmers)

briefings to parliamentarians and government officials

Creation of competitive culture:publications in the mass media, trade journals website, the Internet, Twitter and other social networkspress releases participation in public debateslectures, panel discussions, symposiums

Developing tools that enable effective advancement of Developing tools that enable effective advancement of communicationscommunications

Creating support for competition policy and Creating support for competition policy and antimonopoly enforcementantimonopoly enforcement

Legislative support: official comments on legislationconsultancy and recommendationslegal monitoring protocols of cooperation with the authoritiesInternational cooperation and the implementation of standardsinclusion of standards to ensure the safeguarding of competition in the related industries

Target groups for competition advocacy :

Communication tools in the competition advocacy

Competition advocacy in the form of Competition advocacy in the form of Public relations and Public relations and PR-events includes PR-events includes ::

Informing community about the work of the Informing community about the work of the antimonopoly authorityantimonopoly authority

Receiving feed-back regarding activities of the Receiving feed-back regarding activities of the antimonopoly authorityantimonopoly authority

Conducting a dialogue and taking into account Conducting a dialogue and taking into account opinions of market participantsopinions of market participants

Attracting attention of the community to the problems Attracting attention of the community to the problems of developing competitionof developing competition

Raising the status of the antimonopoly authority and Raising the status of the antimonopoly authority and the level of recognised competence of the members of the level of recognised competence of the members of staffstaff

Competition advocacy enables Competition advocacy enables ::

1.1. Engage expertsEngage experts, , operating on the market, in operating on the market, in achievingthe task of developing competitionachievingthe task of developing competition

2.2. Report to the community about the work of Report to the community about the work of the antimonopoly authority as a body that the antimonopoly authority as a body that spends taxpayers’ moneyspends taxpayers’ money

3.3. Create clear and equal rules of the game in Create clear and equal rules of the game in the market for both Russian and foreing the market for both Russian and foreing economic entitieseconomic entities

4.4. Enhance political and legal culture of citizensEnhance political and legal culture of citizens5.5. Form public opinion and support for the Form public opinion and support for the

initiatives put forward by the antimonopoly initiatives put forward by the antimonopoly authorityauthority

Who will win?

Healthy competition? Can fight by the rules and win, so they must be actively advocate and promote

THANK YOU THANK YOU FOR YOUR FOR YOUR

ATTENTIONATTENTION!!

irknyazeva@yandex.ru