"In some industries, the concentration of property rights and even ownership production capabilities reaches 60%-70% and sometimes 80%," he said. "It looks like entire industries have been monopolized."
Vertically integrated companies create jobs, however they are destructive to the Russian economy, Mr. Artemiev said.
According to him, "this is the Russian economy's black hole which distorts standard market competition."
Mr. Artemiev said these companies split Russia into areas through transfer pricing, efforts to crush small businesses and the merger of economic and political authorities. "These companies' money influences gubernatorial elections," said Mr. Artemiev. "Therefore we intend to fight monopoly rights on the Russian industrial market."
Lacking any mechanism to achieve this goal, the service is busy developing an antitrust program for industry. If approved by the government, the program will enable the service to have the necessary tools, including measures to force the sale of shares. Certain amendments to the current legislation, including defense of property rights, will be prepared.
Mr. Artemiev also noted that even though the owners were not always at fault for the increased concentration in their sector, it was still detrimental to the economy as a whole.
It will take about a year to create an antitrust program, he said.
Speaking to the service's leadership, Mr. Artemiev mentioned the unfavorable situation on the Russian advertising market and that a special report with proposals on relevant legal improvement was submitted to Prime Minister Mikhail Fradkov.
"We are very upset about developments in the advertising sphere, especially in television commercials," continued Mr. Artemiev. "Last week we sent a report to thehead of the government." The report contained a recommendation to introduce amendments to the current legislation on advertising, which will initially be coordinated with the Economic Development and Trade Ministry.
The service is most concerned with the promotion of alcoholic beverages under the guise of other food products, as well as with advertisements for alleged medical products, said Mr. Artemiev.
He reported that over the last three weeks he signed instructions on beginning legal proceedings in over 40 cases related to unscrupulous advertising. Most of the cases pertain to the advertisements for alcoholic beverages and tobacco, pointed out Mr. Artemiev.
Life has shown that an antitrust service will win over 90% of its trials. But the makers of such unscrupulous ads cannot be held accountable under current laws and therefore the laws should be amended, he concluded.
