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JUDGE SCHNEIDER: ANTI-TRUST LEGISLATION CAN'T BE ENACTED BY GOVERNMENT OFFICIALS ENGAGED IN BUSINESS
Grisha Balasanyan
hetq
00:20, February 6, 2012
Hetq speaks with Mr. Markus Schneider Presiding Judge at District
Court of Hamburg (Enforcement), and a specialist in unfair economic
competition issues.
What dangers do monopolies pose for small nations like Armenia and
what are the primary measures to be taken to combat it?
While I am not an expert in monopolies, in Germany there exists
an anti-trust structuure that primarily deals with preventing such
manifestations. But I can say that monopolies can pose both economic
and cultural problems for a country.
Monopolies are problematic from a democratic perspective, as well
from a human and political stance. It all comes down to just how
strong the anti-monopoly agencies are in your country and whether
they can prevent the creation of monopolies. The German anti-trust
body is quite severe when dealing with such issues.
But aren't such anit-monoply measures purely for show, when you have
government official and MP's who are engaged in business activities?
In Germany, the courts deal with such questions and the courts enjoy
the highest degree of independence. A minister or other government
official cannot exert any influence on the courts. The anti-monopoly
agency also enjoys a fair degree of independence regarding its actions,
but the main question of import is whether the entire sector is being
regulated legislatively and to what degree are the laws being applied.
If there are laws on the books but they remain on paper, then it's
a tragedy. In Germany, without doubt, the laws must be applied.
Presently, the process of oligarichization is taking place throughout
the world and is progressing at a fast clip in Armenia. Naturally,
given this situation, the role of anti-monopoly structures takes on
heightened significance.
Now, if government officials and MP's, that's to say the ones who are
responsible for enacting anti-trust legislation and other measures, are
also involved in business, then there's a very entrenched problem here.
But I must say that based on what I have seen from your State
Commission for Economic Protection my impression is that their work
isn't just for show.
Take for example the recent sour cream scandal. The Commission took
the correct decision. Naturally what I have witnessed is just a tiny
fragment of the entire picture you have amassed.
What about the fact that the owner of the sour cream company found
violating the law is an MP? Then again, the company of another MP
has been churning out knock-off vodka for years and the Commission's
decisions have no real effect?
This is a question dealing with legal culture. In the case where a
real legal culture exists, the violating business owner should not
be able to continue operating in such a manner if fined or shut down.
If a business continues to flout the law after being fined then I am
at a loss how to describe the situation. The fines levied must be
so prohibitive as to halt such behavior. They just can't be at the
level of another business expense.
From: A. Papazian
Grisha Balasanyan
hetq
00:20, February 6, 2012
Hetq speaks with Mr. Markus Schneider Presiding Judge at District
Court of Hamburg (Enforcement), and a specialist in unfair economic
competition issues.
What dangers do monopolies pose for small nations like Armenia and
what are the primary measures to be taken to combat it?
While I am not an expert in monopolies, in Germany there exists
an anti-trust structuure that primarily deals with preventing such
manifestations. But I can say that monopolies can pose both economic
and cultural problems for a country.
Monopolies are problematic from a democratic perspective, as well
from a human and political stance. It all comes down to just how
strong the anti-monopoly agencies are in your country and whether
they can prevent the creation of monopolies. The German anti-trust
body is quite severe when dealing with such issues.
But aren't such anit-monoply measures purely for show, when you have
government official and MP's who are engaged in business activities?
In Germany, the courts deal with such questions and the courts enjoy
the highest degree of independence. A minister or other government
official cannot exert any influence on the courts. The anti-monopoly
agency also enjoys a fair degree of independence regarding its actions,
but the main question of import is whether the entire sector is being
regulated legislatively and to what degree are the laws being applied.
If there are laws on the books but they remain on paper, then it's
a tragedy. In Germany, without doubt, the laws must be applied.
Presently, the process of oligarichization is taking place throughout
the world and is progressing at a fast clip in Armenia. Naturally,
given this situation, the role of anti-monopoly structures takes on
heightened significance.
Now, if government officials and MP's, that's to say the ones who are
responsible for enacting anti-trust legislation and other measures, are
also involved in business, then there's a very entrenched problem here.
But I must say that based on what I have seen from your State
Commission for Economic Protection my impression is that their work
isn't just for show.
Take for example the recent sour cream scandal. The Commission took
the correct decision. Naturally what I have witnessed is just a tiny
fragment of the entire picture you have amassed.
What about the fact that the owner of the sour cream company found
violating the law is an MP? Then again, the company of another MP
has been churning out knock-off vodka for years and the Commission's
decisions have no real effect?
This is a question dealing with legal culture. In the case where a
real legal culture exists, the violating business owner should not
be able to continue operating in such a manner if fined or shut down.
If a business continues to flout the law after being fined then I am
at a loss how to describe the situation. The fines levied must be
so prohibitive as to halt such behavior. They just can't be at the
level of another business expense.
From: A. Papazian