ECHONOMICS: what corrections the Federal Antimonopoly Service of Russia is preparing

Fines for imitation of an alien brand, pirating of employees and partners of businessmen may be introduced in Russia. This and other novations will be stipulated in the amendments to the Competition Law, which are currently being elaborated by the Federal Antimonopoly Service of Russia.

Expert’s commentary

Vitaly Grebennikov, Associate at the Law Firm "YUST"

The discussed amendments appear excessive. Article 14 of the Competition Law contains an open list of supposed offences. There is currently nothing that would impede the antitrust authority to bring persons to liability for imitation of alien brands as well as for any other acts of dishonest competition. Even more so that the practice is supported by the Higher Court of Arbitration of Russia. In its turn, there are doubts that the initiative of the prohibition to pirate employees from a company to its competitor will be expanded. Here the FAS of Russia may enter into a contradiction with the existing labor legislation and the Constitution of the Russian Federation. The court practice has attempts to bring a company that was allegedly pirating employees to liability, but all of them failed. The FAS of Russia suggests the idea for discussion, in order to bring attention to the problem, to initiate certain cases, probably, but currently there are no reasons to specially amend the relevant legislation.

The expert’s opinion is also available as a record: Echo Moskvy, Echonomics, 08.07.2013 (on air on 19:45).