Challenging Monopolies in Digital Markets: New Strategies Suggested by FAS
In a recent development, Russia's Minister of Digital Development, Maksut Shadaev, has announced a series of measures aimed at regulating antimonopoly immunities in the IT industry. These measures are part of a larger effort to foster a more competitive domestic market and reduce digitalization costs.
Shadaev stated that spending on Russian software has increased more than 3.5 times over the past five years, indicating a growing interest in homegrown IT solutions. He emphasized that while Russia supports competition, it cannot solely rely on products from unfriendly countries and must develop its own competitive solutions.
The Federal Antimonopoly Service (FAS) of Russia has published a document outlining changes to antimonopoly immunities. According to the document, immunities will no longer apply if actions aimed at restricting competition are taken. This could potentially impact rights holders, including intellectual property and technology providers, who can currently abuse their dominant position, form cartels, and enter into anti-competitive agreements.
The FAS hopes that these changes will help reduce digitalization costs, with the implementation of the "Economy of Data" national project requiring over 1 trillion rubles. Shadaev believes that protective measures are necessary for the development of the IT industry in Russia.
Examples of protective measures already in place include tax preferences, deferment of military service, and IT mortgages. However, Shadaev did not specify which measures are aimed at reducing costs for companies and stimulating investment activity, or which are aimed at developing demand for IT solutions.
One instance where such protective measures could have been beneficial is with domestic software suppliers for Rosselkhozbank. After foreign IT companies left Russia, these suppliers increased prices ninefold, and the bank was unable to challenge their actions due to antimonopoly immunities.
The bill, developed at the request of Deputy Prime Minister Dmitry Grigorenko, will affect rights holders who can influence the goods market and whose actions are aimed at restricting competition, including non-transactional platforms like social networks, search services, and video hosting.
The precise changes and their impact on the IT sector remain undetailed, as no direct or recent data specifies the proposed amendments. For authoritative details or text of the bill, it would be advisable to consult official Russian government releases or authoritative legal analysis on Russian antitrust developments from mid-2025 onward.
In conclusion, Russia is taking steps to regulate antimonopoly immunities in the IT sector, with the goal of fostering a more competitive domestic market and reducing digitalization costs. The exact nature and impact of these changes are yet to be fully understood.
- Russia's recent measures in the IT industry, including regulating antimonopoly immunities, aim to encourage business competition and cut costs associated with digitalization.
- The Federal Antimonopoly Service's changes to antimonopoly immunities might affect various rights holders, such as intellectual property and technology providers, by limiting their ability to restrict competition.
- The development and implementation of protective measures, like tax preferences and IT mortgages, are crucial for the growth of the domestic IT business sector in Russia, as they can help reduce costs for companies and stimulate investment activity.
