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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.