What would Armenia benefit in competition if integrated with Europe?
Interview with Artak Shaboyan, Chairman of the RA State Commission for the Protection of Economic Competition
-Mr. Shaboyan, what will Armenia’s membership with the Customs Union change in Armenia?
-Recently we received an invitation to meet our counterparts from the Russian anti-monopoly service to discuss issues related to expected changes and harmonizing the law. Our Russian counterparts have analyzed our legislation and compared with the Customs Union legislation. Recently we also did some changes to the Armenian law in cooperation with European experts to harmonize the Armenian legislation with the European one. The Russian legislation in general is identical to the European one, and there are many similarities. From this point of view, Russian experts believe Armenia will not need a lot of change in the law.
-Does this mean that the work with Europeans was not in vein?
-No. Main approaches and policies will stay the same as the Customs Union typical legislation is very similar to the European.
-There is an opinion that Armenian companies may suffer in relation to state purchases as Russian companies will offer lower prices for products in our market. What do you think about this?
-That issue is included in our agenda. We are still discussing state purchase policies. We do not have that information yet and have to work in that direction.
-In our local market there are businesses that have monopolies. Do you think after joining the Customs Union other companies of the Union may break those monopolies by importing compatible products to Armenia? For example, do you think Alex-Grig company may lose its monopolistic position?
-It is possible that under the Customs Union new market participants will come to the domestic market. Our law does not limit monopolistic position, and the important thing is not to let businesses abuse their powers as monopolists. In case of joining the Customs Union there will be strict control against abuses as there will be a central institution in charge of monitoring and making sure monopolies do not abuse their powers against other market participants.
-Do you think measures against economic abuse in the Customs Union will be stricter?
-Punishment measures will be developed by us and the commission for the union. The CU law that currently we are offered is consistent with Armenia’s law on protection of competition. I don’t think there will be significant changes in relation to accountability and punishment.
-What would be Armenia’s long-term benefit if it did not join the Customs Union and integrated with European Union?
-I do not want to compare now. One thing I know is that Armenia’s trade is huge with CU countries. A large portion of import/export is with Russia. Being in the same union with Russia will make things easier, which will boost trade. New participants will come to the market, which will increase the level of competition.
-Three years ago changes were made to the law on the RA law on protection of economic competition, and now we are proposing new amendments again. What is your expectation from this change?
-New changes to the law have been approved by the government and sent to the parliament for adoption. The changes are proposing to solve some methodology issues, which mostly relate to accountability, control; we want to make these policies consistent with the European policies. There are a couple of issues to be discussed such as punishments and clear definition of what an abuse of monopolistic position is. We want to establish a new tool for fighting against anti-competition agreements between market participants.
-Will the name of informers be confidential?
-We are still in the middle of discussing that, but we will rely on international experience and try to be milder to those businesses who report such abuse about themselves.
-Is it a justified procedure that the State Revenue Committee initiates inspection of businesses but only provides information to the Commission on Protection of Economic Competition?
-We have not applied to the State Revenue Committee for inspection in the past, but from now on we will ask them to carry out inspections whenever necessary. Time will show that it is necessary.
By Gayane Khachatryan
