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FEDERAL LAW OF THE RUSSIAN FEDERATION

of July 26, 2006 No. 135-FZ

About protection of the competition

(as amended on 02-12-2019)

Accepted by the State Duma of the Russian Federation on July 8, 2006

Approved by Council of the Russian Federation on July 14, 2006

Chapter 1. General provisions

Article 1. Subject and purposes of this Federal Law

1. This Federal Law determines the organizational and legal basis of protection of the competition, including the prevention and suppression:

1) monopolistic activities and unfair competition;

2) non-admissions, restrictions, competition elimination by the federal executive bodies, public authorities of subjects of the Russian Federation, local government bodies performing functions of the specified bodies by other bodies or the organizations, and also state non-budgetary funds, the Central bank of the Russian Federation.

2. The purposes of this Federal Law are ensuring unity of economic space, free movement of goods, freedoms of economic activity in the Russian Federation, protection of the competition and creation of conditions for effective functioning of the goods markets.

Article 2. The antitrust law of the Russian Federation and other regulatory legal acts about protection of the competition

1. The antitrust law of the Russian Federation (further - the antitrust law) is based on the Constitution of the Russian Federation, the Civil code of the Russian Federation and consists of this Federal Law, other Federal Laws governing the relations specified in article 3 of this Federal Law.

2. The relations specified in article 3 of this Federal Law can be regulated by orders of the Government of the Russian Federation, regulatory legal acts of federal antimonopoly authority in the cases provided by the antitrust law.

3. If the international treaty of the Russian Federation establishes other rules, than those which are provided by this Federal Law are applied rules of the international treaty of the Russian Federation.

Article 3. Scope of this Federal Law

1. This Federal Law extends to the relations which are connected with protection of the competition, including to the prevention and suppression of monopolistic activities and unfair competition and in which the Russian legal entities and foreign legal entities, the organizations, federal executive bodies, public authorities of subjects of the Russian Federation, local government bodies, other bodies or the organizations, and also state non-budgetary funds, the Central bank of the Russian Federation, physical persons, including individual entrepreneurs performing functions of the specified bodies participate.

2. Provisions of this Federal Law are applied to the agreements between the Russian and (or) foreign persons or the organizations reached outside the territory of the Russian Federation, and also to the actions made by them if such agreements or actions exert impact on competitive situation in the territory of the Russian Federation.

3. Provisions of this Federal Law do not extend to the relations settled by single competition rules in the cross-border markets which control of observance is within the competence of the Eurasian economic commission according to the international treaty of the Russian Federation. Criteria of reference of the market to cross-border are established according to the international treaty of the Russian Federation.

Article 4. The basic concepts used in this Federal Law

In this Federal Law the following basic concepts are used:

1) goods - object of the civil laws (including work, service, including financial service), held for sale, exchange or other introduction into circulation;

2) financial service - banking service, insurance service, service in the security market, service in the agreement of leasing, and also the service rendered by financial institution and connected with attraction and (or) placement of money of legal entities and physical persons;

Interchangeable goods - goods which can be comparable on their functional purpose, application, quality and technical characteristics to the price and other parameters in such a way that the acquirer really replaces or one goods are ready to replace with another 3) in case of consumption (including in case of consumption in the production purposes);

4) the goods market - the sphere of the address of goods (including goods of foreign production) which cannot be replaced with other goods, or interchangeable goods (further - certain goods) in which borders (including geographical) proceeding from economic, technical or other capability or feasibility the acquirer can acquire goods and such opportunity or feasibility is absent beyond its limits;

5) business entity - the commercial organization, the non-profit organization performing the activities which are bringing in it the income, the individual entrepreneur, other physical person which is not registered as the individual entrepreneur, but performing professional activity, revenue-producing according to the Federal Laws based on state registration and (or) the license and also owing to membership in self-regulatory organization;

6) financial institution - the business entity rendering financial services - credit institution, the professional participant of the security market, the organizer of trade, the clearing organization, microfinancial institution, credit consumer cooperative, insurance company, insurance broker, society of mutual insurance, non-state pension fund, managing company of investment funds, mutual investment funds, non-state pension funds, specialized depositary of investment funds, mutual investment funds, non-state pension funds, pawnshop (financial institution, subsupervising to the Central bank of the Russian Federation), leasing company (other financial institution, financial institution, not subsupervising to the Central bank of the Russian Federation);

7) the competition - rivalry of business entities in case of which independent actions of each of them exclude or limited possibility of each of them unilaterally to influence general terms of the goods circulation in the corresponding goods market;

8) discrimination conditions - conditions of access to the goods market, conditions of production, exchange, consumption, acquisition, sale, other transfer of goods in case of which the business entity or several business entities are put in unequal position in comparison with other business entity or other business entities;

9) unfair competition - any actions of business entities (group of persons) which are directed to receipt of benefits when implementing business activity contradict the legislation of the Russian Federation, business customs, requirements of respectability, rationality and justice and caused or can cause losses to other business entities - competitors either did or can do harm to their goodwill;

10) monopolistic activities - abuse of business entity, group of persons of the dominant position, the agreements or coordinated actions prohibited by the antitrust law and also other actions (failure to act) recognized according to the Federal Laws monopolistic activities;

11) systematic implementation of monopolistic activities - the implementation of monopolistic activities by business entity revealed in the procedure established by this Federal Law more than two times within three years;

12) unreasonably high price of financial service, unreasonably low price of financial service - the price of financial service or financial services which is established by the financial institution holding dominant position significantly differs from the competitive price of financial service, and (or) complicates access to the goods market to other financial institutions, and (or) exerts negative impact on the competition;

13) the competitive price of financial service - the price at which the financial service can be rendered in competition conditions;

14) coordination of economic activity - approval of actions of business entities by the third party who is not entering one group of persons with one of such business entities and not performing activities in the goods market in which approval of actions of business entities is performed. Are not coordination of economic activity of action of business entities, performed within "vertical" agreements;

15) antimonopoly authority - federal antimonopoly authority and its territorial authorities;

16) share acquisition (shares) of economic societies - purchase, and also receipt of other possibility of implementation of the voting power granted by shares (shares) of economic societies based on property trust management agreements, cooperation agreements, agreements of the order, other transactions or on other bases;

17) competition restriction signs - reducing number of the business entities who are not entering one group of persons in the goods market, the growth or reduction of price of goods which are not connected with corresponding changes of other general terms of the address of goods in the goods market, refusal of the business entities who are not entering one group of persons of independent actions in the goods market, determination of general terms of the address of goods in the goods market the agreement between business entities or according to obligatory for execution by them instructions of the other person or as a result of approval by the business entities who are not entering one group of persons, the actions in the goods market, other circumstances creating opportunity for business entity or several business entities unilaterally to influence general terms of the address of goods in the goods market, and also establishment by public authorities, local government bodies the organizations participating in provision of the state or municipal services with participation in provision of such services of requirements to goods or to business entities, not stipulated by the legislation the Russian Federation;

18) the agreement - the arrangement in writing containing in the document or several documents and also the arrangement in oral form;

19) the "vertical" agreement - the agreement between business entities, one of whom acquires goods, and another provides (sells) goods;

20) the state or municipal preferences - provision by the federal executive bodies, public authorities of subjects of the Russian Federation, local government bodies performing functions of the specified bodies by other bodies or the organizations to certain business entities of benefit which provides them more advantageous conditions of activities, by transfer of the state-owned or municipal property, other objects of the civil laws or by provision of property privileges, state or municipal guarantees;

21) economic concentration - transactions, other actions which implementation exerts impact on competitive situation;

22) person which is object of economic concentration - person, whose shares (shares), assets, the main production means and (or) intangible assets are acquired or brought in the authorized capital, and (or) person concerning whom rights are acquired according to the procedure, established by Chapter 7 of this Federal Law;

23) the consumer - the legal entity or physical person acquiring goods;

24) system of internal ensuring compliance to requirements of the antitrust law - set of the legal and organizational measures provided by the internal act (internal acts) of business entity or other person from among persons entering one group of persons with this business entity if such internal act (internal acts) extends to this business entity, and directed to observance of requirements of the antitrust law by it and the prevention of its violation.

Article 5. Dominant position

1. Dominant position the provision of business entity (group of persons) or several business entities (groups of persons) in the market of certain goods giving to such business entity (group of persons) or such business entities (groups of persons) opportunity to exert decisive impact on general terms of the address of goods in the corresponding goods market, and (or) to eliminate from this goods market of other business entities, and (or) to complicate access to this goods market to other business entities is recognized. The provision of business entity is recognized dominating (except for financial institution):

1) the share of which in the market of certain goods exceeds fifty percent if only when considering the case about antitrust violation or when implementing the state control of economic concentration it is not determined that, despite exceeding of the specified size, the provision of business entity in the goods market is not dominating;

The share of which in the market of certain goods constitutes 2) less than fifty percent if the dominant position of such business entity is established by antimonopoly authority proceeding from share of business entity invariable or subject to insignificant changes in the goods market, the relative size of the shares in this goods market belonging to competitors, possibility of access to this goods market of new competitors or proceeding from other criteria characterizing the goods market.

2. There cannot be acknowledged dominating provision of business entity (except for financial institution) which share in the market of certain goods does not exceed thirty five percent except for specified in parts 3 and 6 of this Article of cases.

2.1. Cannot be acknowledged dominating provision of business entity - the legal entity, founder (participant) of which are one physical person (including registered as the individual entrepreneur) or several physical persons if the proceeds from sales of goods for the last calendar year of such business entity do not exceed four hundred million rubles, except for:

1) the business entity entering group of persons with other business entity or other business entities on the bases provided by part 1 of article 9 of this Federal Law. This exception is not applied to the business entities entering group of persons on the basis, stipulated in Item 7 parts 1 of article 9 of this Federal Law; to the business entities entering group of persons whose members are only persons entering group of persons on the basis, stipulated in Item 7 parts 1 of article 9 of this Federal Law; to business entity whose member is the individual entrepreneur;

2) financial institution;

3) the subject of natural monopoly in the goods market which is in condition of natural monopoly;

4) the business entity having as founders or members of business entities - legal entities;

5) economic society in which authorized capital there is share of the Russian Federation, the subject of the Russian Federation, the municipality.

2.2. Cannot be acknowledged dominating provision of business entity - the individual entrepreneur who is not entering group of persons with other business entity or other business entities on the bases provided by part 1 of article 9 of this Federal Law if the proceeds from sales of goods of such business entity - the individual entrepreneur for the last calendar year do not exceed four hundred million rubles, and also business entity - the individual entrepreneur entering group of persons with other business entity on the basis, stipulated in Item 7 parts 1 of article 9 of this Federal Law, or entering group of persons with business entity or business entities whose single member or each of which are one or several persons entering into group with business entity or business entities on the basis stipulated in Item 7 parts 1 of article 9 of this Federal Law provided that the total proceeds from sales of goods of such business entities for the last calendar year do not exceed four hundred million rubles.

3. The provision of each business entity from several business entities (except for financial institution) is recognized dominating in relation to which the following conditions are satisfied in total:

1) cumulative share no more than three business entities, share of each of which is more than shares of other business entities in the corresponding goods market, fifty percent, or cumulative share exceed no more than five business entities, the share of each of which is more than shares of other business entities in the corresponding goods market, exceeds seventy percent (this provision is not applied, if share at least of one of the specified business entities less than eight percent);

2) during the long period (within at least than one year or if such term constitutes less than one year, during the term of existence of the corresponding goods market) the relative sizes of shares of business entities are invariable or subject to insignificant changes, and also access to the corresponding goods market of new competitors is complicated;

3) the implementable or acquired by business entities goods cannot be replaced with other goods in case of consumption (including in case of consumption in the production purposes), growth of the price of goods is not caused by the decrease in demand for these goods corresponding to such growth, price information, about sales terms or acquisitions of these goods in the corresponding goods market is available to the uncertain group of people.

4. The business entity has the right to represent to antimonopoly authority or to court of the proof that the provision of this business entity in the goods market cannot be acknowledged dominating.

5. The provision of business entity - the subject of natural monopoly in the goods market which is in condition of natural monopoly is recognized dominating.

6. By the Federal Laws recognition cases dominating provisions of business entity which share in the market of certain goods constitutes less than thirty five percent can be established.

6.1. Voided according to the Federal Law of the Russian Federation of 05.10.2015 No. 275-FZ

6.2. Voided according to the Federal Law of the Russian Federation of 05.10.2015 No. 275-FZ

7. Recognition conditions dominating provisions of financial institution, subsupervising to the Central bank of the Russian Federation, taking into account the restrictions provided by this Federal Law are established by the Government of the Russian Federation in coordination with the Central bank of the Russian Federation. Recognition conditions dominating provisions of other financial institution taking into account the restrictions provided by this Federal Law are established by the Government of the Russian Federation. The dominant position of financial institution, subsupervising to the Central bank of the Russian Federation, is established by antimonopoly authority according to the procedure, approved by the Government of the Russian Federation in coordination with the Central bank of the Russian Federation. The procedure for establishment of dominant position of other financial institution by antimonopoly authority affirms the Government of the Russian Federation. Cannot be acknowledged dominating provision of financial institution which share does not exceed ten percent on the only thing in the Russian Federation the goods market or twenty percent in the goods market, the goods addressing on which is traded also on other goods markets in the Russian Federation.

8. When carrying out stipulated in Item 3 parts 2 of article 23 of this Federal Law of the analysis of competitive situation the antimonopoly authority gives assessment to the circumstances influencing competitive situation including conditions of access to the goods market, shares of business entities in the markets of certain goods, to ratio of shares of buyers and sellers of goods, the period of existence of opportunity to exert decisive impact on general terms of the address of goods in the goods market.

9. The time frame of the analysis of competitive situation is determined depending on research purpose, features of the goods market and availability of information. The smallest time frame of the analysis of competitive situation for the purpose of establishment of dominant position of business entity shall constitute one year or term of existence of the goods market if it constitutes less than one year.

Article 6. Exclusively high price of goods

1. Exclusively high price of goods is the price established by the business entity holding dominant position if this price exceeds the amount necessary for production and realization of such goods of expenses and profit and the price which was created in the conditions of the competition in the goods market comparable on the list of buyers or sellers of goods, conditions of the address of goods, conditions of access to the goods market, state regulation, including the taxation and customs and tariff regulation (further - the comparable goods market), in the presence of such market in the territory of the Russian Federation or beyond its limits, including established:

1) by increase in earlier stated price of goods if at the same time the following conditions are satisfied in total:

a) the expenses necessary for production and sales of goods remained invariable or their change does not correspond to the change in price of goods;

b) the list of sellers or buyers of goods remained invariable or change of list of sellers or buyers of goods is insignificant;

c) the conditions of the address of goods in the goods market including caused by measures of state regulation including the taxation, tariff regulation, remained invariable or their change is disproportionate to the change in price of goods;

2) by maintenance or not decrease in earlier stated price of goods if at the same time the following conditions are satisfied in total:

a) the expenses necessary for production and sales of goods, significantly decreased;

b) the list of sellers or buyers of goods causes possibility of the change in price of goods towards reduction;

c) the conditions of the address of goods in the goods market including caused by measures of state regulation including the taxation, tariff regulation, provide possibility of the change in price of goods towards reduction.

2. In case of observance of the conditions provided by part 1 of article 13 of this Federal Law the price of the goods which are result of innovative activities, that is the activities leading to creation of new not interchangeable goods or new interchangeable goods in case of expense reduction on its production and (or) improvement of its quality is not recognized exclusively high.

3. The price of goods is not recognized exclusively high if it is established by the subject of natural monopoly within the rate for such goods determined in accordance with the legislation of the Russian Federation.

4. The price of goods is not recognized exclusively high in case of not exceeding of the price which was created in the conditions of the competition in the comparable goods market.

5. The price of goods is not recognized exclusively high if it is established at the exchange in case of simultaneous observance of the following conditions:

1) I will eat around the goods sold at the exchange made and (or) sold by the business entity holding dominant position in the corresponding goods market constitutes at least the size established by the federal antimonopoly authority and federal executive body performing normative legal regulation of field of activity to which production of the corresponding goods belongs;

2) bargains are concluded by the business entity holding dominant position in the corresponding goods market during the exchange biddings which conform to requirements, the certain federal antimonopoly authority and federal executive body performing normative legal regulation of field of activity to which production of the corresponding goods, including to requirements to the minimum number of participants of the exchange biddings during the trading session belongs;

3) the business entity holding dominant position in the corresponding goods market, accredited and (or) participating in the biddings (including by submission of applications for participation in the biddings to the broker, brokers), provides to the exchange the list of affiliates according to the procedure, established by federal antimonopoly authority;

4) actions of the business entity holding dominant position in the corresponding goods market and (or) its affiliates do not belong to market manipulation;

5) realization at the exchange of goods by the business entity holding dominant position in the corresponding goods market is performed regularly with uniform distribution of amount of goods on trading sessions during calendar month. The government of the Russian Federation has the right to determine criteria of regularity and uniformity of sales of goods at the exchange for the separate goods markets;

6) the business entity holding dominant position in the corresponding goods market performs registration of off-exchange transactions for deliveries of the goods which are traded on such goods market in cases and according to the procedure which are established by the Government of the Russian Federation;

7) the minimum size of exchange lot does not interfere with access to the corresponding goods market;

8) sales of goods by the business entity holding dominant position in the corresponding goods market is performed at the exchange conforming to requirements of the legislation of the Russian Federation about the organized biddings including requirements to maintaining confidentiality of information on persons who submitted the corresponding applications for participation in the biddings including by submission of such requests to the broker, brokers.

6. The goods price established taking into account the features of forming of starting price for products in case of its sale at the exchange approved with antimonopoly authority is not recognized exclusively high.

7. The goods price is not recognized exclusively high if it does not exceed the price established at the exchange with observance of the conditions provided by parts 5 and 6 of this Article, and at the same time economic (commercial) terms of transaction are comparable by quantity and (or) amount of the delivered goods, completion dates of obligations, conditions of the payments which are usually applied in transactions of this type and also on other reasonable conditions which can exert impact on the price.

8. In case of determination of exclusively high price of goods according to part of 1 this Article the exchange and off-exchange indicators of the prices established in the world markets of similar goods are considered.

Article 7. Exclusively low price of goods

1. Exclusively low price of goods is the price established by the business entity holding dominant position if this price is lower than the amount necessary for production and realization of such goods of expenses and profit and low price which was created in the conditions of the competition in the comparable goods market, in the presence of such market in the territory of the Russian Federation or beyond its limits, including established:

1) by decrease in earlier stated price of goods if at the same time the following conditions are satisfied in total:

a) the expenses necessary for production and sales of goods remained invariable or their change does not correspond to the change in price of goods;

b) the list of sellers or buyers of goods remained invariable or change of list of sellers or buyers of goods is insignificant;

c) the conditions of the address of goods in the goods market including caused by measures of state regulation including the taxation, tariff regulation, remained invariable or their change is disproportionate to the change in price of goods;

2) by maintenance or not increase in earlier stated price of goods if at the same time the following conditions are satisfied in total:

a) the expenses necessary for production and sales of goods, significantly increased;

b) the list of sellers or buyers of goods causes possibility of the change in price of goods towards increase;

c) the conditions of the address of goods in the goods market including caused by measures of state regulation including the taxation, tariff regulation, provide possibility of the change in price of goods towards increase.

2. The goods price is not recognized exclusively low if:

1) it is established by the subject of natural monopoly within the rate for such goods determined in accordance with the legislation of the Russian Federation;

2) it not the low price which was created in the conditions of the competition in the comparable goods market;

Its establishment by the seller of goods did not entail 3) or could not entail restriction of the competition in connection with reducing number of the business entities who are not entering with sellers or buyers of goods one group of persons in the corresponding goods market.

Article 8. Coordinated actions of business entities

1. Coordinated actions of business entities are the actions of business entities in the goods market in the absence of the agreement satisfying sets of the following conditions:

1) the result of such actions corresponds to interests of each of the specified business entities;

2) actions are known to each of the business entities participating in them in connection with the public statement of one of them about making of such actions;

3) actions of each of the specified business entities are caused by actions of other business entities participating in coordinated actions and are not consequence of the circumstances equally influencing on all business entities in the corresponding goods market. Change of regulated rates, the change in price for the raw materials used for production of goods, the change in price for goods in the world goods markets, the essential shift in demand on goods within at least than one year or during the term of existence of the corresponding goods market if this term constitutes less than one year can be such circumstances, in particular.

2. Making by persons specified regarding 1 this Article of actions under the agreement does not belong to coordinated actions, and is the agreement.

Article 9. Group of persons

1. Group of persons set of the physical persons and (or) legal entities corresponding to one or several signs from the following signs is recognized:

1) economic society (partnership, economic partnership) and physical person or the legal entity if such physical person or such legal entity has owing to the participation in this economic society (partnership, economic partnership) or according to the powers received including based on the written agreement, from other persons, more than fifty percent of total quantity of the voices falling on voting shares (shares) in the authorized (share) capital of this economic society (partnerships, economic partnership);

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