Investigative Authority of the FAS: Key Considerations for Corporate Legal Defense

The statutory remit of the FAS of Russia encompasses state oversight of competition law compliance, detection and remediation of antitrust violations, prevention of monopolistic practices and unfair competition, and supervision of public procurement and commercial bidding procedures.

To execute its supervisory mandate, the antimonopoly authority is legally empowered to conduct scheduled (routine) and unscheduled (dawn raids and ad hoc) inspections, executed either as on-site (field) audits or desk-based (documentary) reviews. On-site audits are conducted at the legal domicile or operational facilities of the target enterprise, whereas documentary audits are performed directly at the offices of the antimonopoly authority.

Grounds for FAS Audits: Statutory Triggers and Legal Risk Assessment

The primary legal framework establishing the regulatory mandate of the FAS of Russia and governing its investigative powers is Federal Law No. 135-FZ of July 26, 2006, "On Protection of Competition" (the "Competition Law").

Article 25.1 of the Competition Law establishes the statutory grounds for initiating scheduled and unscheduled inspections. Scheduled audits are conducted upon the expiration of a three-year period following:

1. The incorporation of a legal entity or state registration of an individual entrepreneur;
2. The formal conclusion of the most recent scheduled inspection conducted by the antimonopoly authority.

Unscheduled FAS Audits: Strategic Legal Counsel

Statutory triggers for unscheduled (ad hoc) regulatory investigations include:

1. Referrals and investigative dossiers received from law enforcement agencies, state or municipal bodies, public associations, or Business Rights Commissioners indicating potential antitrust violations;
2. Formal complaints, petitions, or credible media reports alleging anti-competitive conduct or regulatory non-compliance;
3. Expiration of statutory deadlines for complying with binding administrative orders issued following antitrust proceedings or merger control approvals;
4. Direct regulatory directives issued by the President or the Government of the Russian Federation;
5. Direct discovery of antitrust infringement indicators by the antimonopoly authority through independent monitoring.

FAS Audit Procedures: Investigation Mechanics and Corporate Defense

The primary objective of an FAS inspection is to verify whether corporate transactions, commercial practices, and internal decisions strictly comply with antitrust statutes and competition regulations.

An official inspection must strictly be initiated pursuant to a formal administrative order issued by the head of the antimonopoly authority. During the audit, regulatory officials are legally prohibited from demanding documents or information outside the defined scope of the investigation, as well as records directly accessible through inter-agency data exchange with other state supervisory authorities.

As a general rule, an antimonopoly inspection must conclude within one month. However, the Competition Law permits a two-month extension under specific circumstances—such as when conducting complex market studies, expert analyses, or document translations. In all cases, the statutory duration of an audit cannot exceed three months.

Legal Defense During FAS Audits: Mitigating Violations and Administrative Penalties

Enterprises lacking full clarity regarding the statutory scope, procedural limitations of an audit, or the limits of regulatory authority frequently experience procedural overreach and rights violations by investigating officers. Retaining seasoned legal counsel ensures rigorous oversight and shields the company against unlawful regulatory overreach.

Legal Support in FAS Investigations and Challenging Audit Outcomes

The attorneys at BRACE Law Firm possess extensive experience in antitrust law and regulatory compliance, providing end-to-end legal support during all types of antimonopoly audits, dawn raids, and subsequent administrative and judicial appeals.

We provide the following comprehensive legal services:

1. Managing and supervising corporate defense throughout inspections conducted by the Federal Antimonopoly Service;
2. Structuring evidentiary records and legal defense positions to eliminate or significantly reduce administrative penalties;
3. Drafting exhaustive legal analyses and case law digests on complex antitrust issues and commercial court precedents;
4. Challenging unlawful decisions and corrective orders of regional FAS directorates through administrative appeals to the central authority;
5. Litigating against FAS determinations and enforcement orders before commercial (arbitrazh) courts.