Extending the scope of antitrust laws in the field of shares, carried out in the fields of banking and insurance services
On extending the scope of the Law
Of the Republic of Belarus, named "the Law on counteraction to
monopolistic activity and the
of competition development "on a deal with
actions carried out in the markets
banking and insurance services
In recent years, the number of addresses bank and insurance companies to the Department of pricing policy of the Ministry of Economy on the issue of approval the deals with shares at the abovementioned financial markets by the antimonopoly authority.
On the basis of the Article 12 of the Law of he Republic of Belarus, named" the law on Counteraction to Monopolistic Activities and Promotion of Competition “ (hereinafter - the Law) and in accordance with the Regulations of the Department of pricing policy of the Ministry of Economy of the Republic of Belarus, approved by the Council of Ministers of the Republic of Belarus Decision of 29.07.2006 № 967, the Department carries out the State control over the transactions with the shares, owned by business entities and (or) issued by them, in order to prevent the emergence or strengthening the dominating position of economic entities at the commodity market.
According to the Clause 3, Article. 3 of the Act, the relations, associated with monopolistic activity and unfair competition at the securities markets and financial services markets, except those cases, when folding relationships at these markets influence competition at commodity markets are regulated not in the scope of the Act, but with other legislative acts.
Based on the functions, assigned at the Department in the field of state antitrust policy implementation, it is noted.
In accordance with the instruction for determination of the dominant position of economic players at the commodity markets of the Republic of Belarus, approved by the Ministry of Economy of the Republic of Belarus of October 17, 2002 № 229, an indicator, that characterizes the dominating place of economic entity (group of business entities) carrying out activities in the banking market calculated as the ratio of total assets of the business entity to the total assets of all entities that provide banking services within specified geographical boundaries of the market. For an economic entity (group of business entities) carrying out the activities at the insurance market, is calculated as the ratio of insurance premiums of an economic entity to the total premiums of all businesses that provide insurance services within a specified geographical market boundaries.
Insurance and banking services markets in the Republic of Belarus are competitive. The share of each of the majority of bank and insurance companies does not exceed the relevant financial markets in 10%, except such organizations as “Belarusbank” and Omir insurance company “Belgosstrakh”.
Thus, the conducting of transactions with shares of banks, insurance companies, the market shareof which does not exceed (including cumulative) 30% of the market, does not create or strengthen the dominating position of economic entities at the financial services markets. Consent of the competition authority in implementing such transactions is not needed.
The question of reasonability of the above deals and the issue on the establishment of the other possible requirements are outside the purview of the Department.