Issues related to the sustainability of food markets are crucial for all countries, governments, and international organizations. Antitrust authorities also pay significant attention to these markets, addressing challenges at various levels of the supply chain, from agricultural and food production to distribution on store shelves. Experts discussed sector regulation at the session “Antimonopoly Control in Food Markets,” held on November 15 at the HSE as part of the IX International Scientific and Practical Conference “Antitrust Policy: Science, Practice, Education.”
Food markets are global in nature, and changes in local markets are often driven by supply and demand imbalances at the international level. In Russia, when prices rise, antitrust authorities traditionally look for signs of collusion or abuse of dominant market positions. However, in 80% of cases, the causes are found in the imbalance between supply and demand, noted the session moderator, Timofey Nizhegorodtsev, Deputy Head of the FAS Russia. He suggested that session participants discuss how to differentiate between objective price increases and other factors, and what measures should be taken to restore market balance and price stability.
In the photo: Alexey Ivanov © HSE
The lack of a unified methodology for working with the value chain is one of the main challenges facing antitrust regulation today, said Alexey Ivanov, Director of the BRICS Competition Law and Policy Centre. While many market participants have reached a high level of digitalization and optimized their business processes to achieve commercial efficiency, antitrust authorities act fragmentarily, regulating individual market segments without considering the entire value chain structure.
“We are now trying to shift our approach from segmental analysis to a comprehensive study of the entire value chain, as in our initiative to conduct a large-scale study of the grain trade market within BRICS,”
said Alexey. The value chain analysis method was highly praised in the latest UNCTAD Trade and Development Report, which emphasized the importance of viewing the global food chain as a whole, rather than focusing on individual markets, he added.
Among the tools regulators have to respond to price risks in real-time—rather than after the fact—are price growth indicators, noted Nadezhda Sharavskaya, Head of the Department for Social Sphere, Trade and Non‑productive Services of the FAS. For the effective operation of price growth indicators, expanding access to data on exchange price indicators, various price systems within the EAEU, and the participation of economic entities in the system’s work are essential. In light of rising market monopolization, it is especially important to exercise effective control over economic concentration, including through active cooperation and coordination of antitrust policies among authorities, she emphasized.
In the photo: Yulia Kokunova © HSE
Yulia Kokunova, Head of the Department for Control over Agro‑industrial Complex of the FAS, highlighted priority areas for FAS’s work in agricultural and food markets, including monitoring economic concentration, analyzing competition, controlling subsidies to agricultural producers, and developing “soft law” tools (such as voluntary commitments by market players to limit prices on socially significant food products).
“Between 2021 and 2024, over 700 regulations from Russian regions were analyzed, and 49 warnings were issued, the vast majority of which were executed on time,”
she reported.
Iskandar Bin Ismail, CEO of Malaysia Competition Commission, presented a report on an investigation into the broiler chicken market, where regulators analyzed the entire value chain. The investigation found that five companies controlling 40% of the country's animal feed market violated the Competition Law by forming an agreement that “prevented, restricted, or distorted competition” in the market.
According to Mr. Bin Ismail, feed costs account for 72.8% of the total production cost of chickens, compared to other factors like day-old chicks (21%), labor (2.6%), transportation (1.7%), vaccines/vitamins (1.0%), and utilities such as water and electricity (0.9%). The total fine for violators amounted to 415 million ringgit ($92 million). China's food market is highly competitive and regulated under the Anti-Monopoly Law and the Price Law, which prohibit price manipulation, price gouging, and predatory or discriminatory pricing, said Ning Xuan Feng, Vice‑Chairman of the International Chamber of Commerce, Associate at King & Wood Mallesons. She noted that private companies now control about 90% of the country's agricultural procurement market, with rules governing minimum prices for items like grain, rice, and oil, partially protecting the industry.
“In this highly sensitive geopolitical situation, it is crucial for us to unite and work together on our economic and financial security, recognizing them as essential components of national security,”
she added.
© HSE
In September 2024, Egypt’s antitrust authority filed criminal cases against 21 major egg producers, accusing them of colluding to set prices in violation of competition law. Rowan Abdallah, Senior Economic Researcher, Egyptian Competition Authority, discussed the progress of the investigation and the new food market monitoring system, including the development of price anomaly indicators.
In the photo: Ujjwal Kumar, Ning Xuan Feng © HSE
Ujjwal Kumar, Deputy Director, CUTS International, noted that agriculture in India plays a crucial role in the livelihoods of around 200 million people, or 40% of the workforce. The sector is dominated by small farmers with an average landholding of just one hectare. In 2020, India introduced three government ordinances to introduce market mechanisms and greater openness to global trade. However, farmers still face challenges accessing markets, low prices, and limited opportunities to move up the value chain due to intermediaries. Protests continue, with farmers demanding a new law guaranteeing a minimum price for agricultural products (Minimum Support Price).
“Liberalization is needed, but it must be approached cautiously to avoid creating an anti-competitive market structure. The main issue remains: how to balance market freedom with protecting the interests of small farmers, ensuring fair competition, and consumer welfare,”
said Ujjwal Kumar.
In the photo: Aldash Aitzhanov © HSE
Aldash Aitzhanov, Chairman of Public Association “Alliance of Antimonopoly Experts”, explained that Kazakhstan's main antitrust tool is the analysis of commodity markets, which identifies barriers, violations, and proposes measures to government agencies. Price caps help curb the cost of socially important food products (SIFP), which include 19 items like flour, bread, eggs, and rice. Local authorities set and approve price caps for each region, while antitrust authorities monitor prices in cooperation with local administrations. Antitrust compliance is also actively used to control prices. In 2021, 199 compliance agreements were signed with producers, wholesalers, and retail chains of SIFP, reducing the price markup on buckwheat and chicken meat.
In the photo: Evgeny Khokhlov © HSE
Evgeny Khokhlov, Partner at Antitrust Advisory law firm, pointed out that federal retail chains are rapidly expanding their market share in Russia, pushing out local chains and replacing distributors. In response, local networks are merging to compete with federal players, reducing the number of independent market participants. An alternative to federal chains could be the growing food sales on marketplaces, with food products becoming the leading category for online sales in 2024 (17%).
In the photo: Irina Knyazeva © HSE
When a company holds a dominant market position, antitrust authorities closely examine its actions, especially marketing strategies like discount policies, as these may lead to unfair competition by driving smaller players out of the market or creating barriers for new entrants, said Irina Knyazeva, Doctor of Economics, Professor, Head of “Competition Policy and Economics Research Center” Research Laboratory at the Siberian Institute of Management/Branch of the Russian Presidential Academy of National Economy and Public Administration. Large companies with dominant positions may use discounts and promotions as tools for anti-competitive behavior, thus limiting competition and violating fair trade principles.
The IX International Research and Practice Conference “Antimonopoly Policy: Science, Practice, Education” was co-organized by the BRICS Competition Law and Policy Centre and the FAS of Russia. The conference also included a meeting of the BRICS Working Group on Cartels. In addition, the agenda of the conference included a discussion on the development of commodity and raw materials exchange trading in Russia and coordination on the establishment of the BRICS Commodity and Raw Materials Exchange. A separate session was devoted to the current challenges of antimonopoly regulation in financial markets.
