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Akhmedov Sh. M.
1 course, Faculty of Economics Dagestan State University Russia, Republic of Dagestan, Makhachkala ANTIMONOPOLY POLICY
Abstract: This article discusses antitrust policy, which is a special set of economic, administrative, and legislative measures implemented by the government to ensure conditions for market competition and prevent excessive market monopolization that threatens the normal functioning of the market mechanism.
Keywords: antimonopoly policy,antitrust low,sets prices,to evolve, suppression of monopolies, price discrimination, competitiveness.
Antimonopoly policy is a set of government measures aimed at preventing the emergence, restriction and suppression of monopolies, providing all market participants with the possibility of equal conditions of competition and preventing unfair competition.
The main instrument for regulating the activities of monopolies is antitrust
law.
The antitrust law was founded in the United States and Canada. It is based on a package of laws, including the laws of Sherman (1890) and Clayton (1914).
The main focus of the Sherman Act was the fight against the monopolization of trade and commercial activities, prohibiting the monopolization of the market, making illegal all associations and collusion aimed at hindering production and trade, at eliminating competition. Penalties in this case were fines, damages, imprisonment, disbanding organizations.
Clayton's law was intended to outlaw the activities of large firms that were not covered by the Sherman Act. Clayton opposed price discrimination, prohibited exclusive or "coercive" agreements and outlawed the acquisition of shares of competing firms, etc. [1]
Further, other countries began to develop antitrust laws. So, for example, in 1948 in Great Britain the law on monopolies was adopted, France in 1963 adopted antitrust measures. Today, antitrust laws exist in all countries.
In 1991, Russia begins the formation of antitrust policy. The first law was passed on March 22. The law "On Competition and the Restriction of Monopolistic Activities in Commodity Markets" lists the main tasks: state control over the observance of this legislation, restriction, regulation, and control of
monopolies. The executive authority that monitors compliance with antitrust laws is the Federal Antimonopoly Service.
Monopolies appear, because of lack of competition, which, in turn, leads to the opposite. The combination of state measures to limit monopolistic activity and the preservation of free competition is the state antitrust policy.
The antitrust policy of the state includes tasks for the development of the economy, competitiveness of various goods and services, and providing employment for the population. In different countries, antitrust policy has its own characteristics, but their essence is the same: measures to protect and promote competition, control the activities of firms, control prices, protect the interests of consumers, support small businesses.
Looking through the formation and development of antimonopoly policy, two stages can be distinguished: the stage of strict attitude to monopolies and the stage, consideration of the relationship between monopoly and competition from improving the performance of the economy. [2]
The purpose of the antimonopoly policy is to create such conditions that only a zone of natural monopoly functions. A natural monopoly is formed when one firm produces goods at lower costs than several small firms. Further, when the volume of natural monopoly output increases, the average cost of production decreases.
If a firm achieves a natural monopoly status in an industry, then it can set prices above costs and restrain the amount of goods that are optimal for society. Consequently, there is a need, from the state, the regulation and control of natural monopolies. It is for this purpose that the law on the regulation of natural monopolies was adopted in Russia in 1993. [3]
Methods of regulation of participants of natural monopolies:
• Price regulation, using the definition of a price level limit.
• Identification of consumers that must be serviced.
• Determination of the minimum consumer security, if it is not possible to satisfy the needs for the product that the participant of the natural monopoly produces, in full.
In the natural monopolist market, pricing is also important. Through the pricing system is set the optimal price level. With the help of pricing tools, one can achieve lower prices, higher production volumes, and a decrease in the economic profit of natural monopolies. In certain situations there are industries aimed at the defense of the country. They serve the state as a monopoly consumer. They can not themselves determine the volume of production, nature of products, prices, suppliers. Requirements are always different and depend on the state itself.
The state also has other tools to curb the income of a natural monopoly: fiscal, customs, credit policy; regulation of ownership on the basis of shares, nationalization, change in the legal form of activity. The task of the state is to encourage new companies to develop new sectors of the market. It is also necessary to reduce entry and exit barriers to the market. Monopolies are the main problem for the economy of any country. The way in which antitrust policy is
conducted in Russia differs from other countries and requires double efforts, since modern Russian monopolies are inherited from the monopolies of socialism. In the 1990s, the question of transition to a market economy arose and without certain measures against monopolies it was impossible. This problem affected not only the economic side of state policy, but also the political and even escalated into a public threat. It was thanks to antitrust policy that favorable conditions were created for the transition to a market economy. In the modern world, the role of antitrust policy is also very large. After all, the welfare of citizens directly depends on the correctness of the conduct of this policy. Antimonopoly policy continues to evolve around the world. Now there is an improvement of the regulatory framework. In a general sense, the antimonopoly policy of the state is aimed at the whole range of ways to improve economic development, increase competitiveness in the market, and provide employment for the population. Since Russia has vast territories, a great variety of natural resources and climatic conditions, natural monopolies have a special role. The main industries are electricity, gas supply and oil refining. Thus, the state antitrust policy should be developed in relation to natural monopolies and artificial ones.
References:
1. Voloskovich N.A. Specificity of the formation of the availability of paid consumer services. Vestnik MGU. Economy series. - 2012. - №3.
2. Katochkov V.M. Innovative directions of development of the service sector as a factor of economic growth // Questions of the innovation economy. - 2014. - №1
3. Romanov M.M. Factors determining the role and significance of services in modern society: Sustainable development of the Russian economy. International scientific-practical conference: a collection of articles. - Moscow: MESI, 2005. p. 78-81 (210 p.)
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