Module V·Article IV·~1 min read

Antitrust Law: Rules of Competition

Asset Protection and Legal Structures

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Why Antitrust Law Is Needed

Monopoly and cartels harm consumers: they inflate prices, lower quality, and hinder innovation. Antitrust (competition) law is intended to maintain effective competition.

Key Prohibitions

Cartels — horizontal agreements between competitors to fix prices, divide markets, or restrict production. Hardcore cartel — a criminal offense in most jurisdictions. Penalties: up to 10% of global turnover in the EU, up to 15% in Russia.

Abuse of Dominant Position — a company with a market share >50% (in Russia — >35% under additional conditions) cannot: set monopoly-level high prices, apply discriminatory terms, or create barriers to market entry.

Anti-competitive Mergers — The FAS Russia, European Commission, and FTC review large M&A deals for substantial restriction of competition. They can prohibit deals or require asset divestitures.

Leniency Programs

The first cartel participant who voluntarily reports it to the regulator receives full or partial exemption from fines. This creates instability within cartels and incentivizes members to "turn themselves in".

UAE and Competition

UAE Competition Law (2012, updated 2022) — prohibits cartels, abuse of dominant position, establishes merger control. Regulator — Ministry of Economy. Enforcement is becoming more active.

Practical Assignment

The three largest suppliers of construction materials in the region meet at an industry association and discuss “market trends.” A month later, prices for all three rise by the same amount. Is this a cartel? What evidence will the FAS collect? How to defend?

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