The Federation Council proposed limiting the market share of marketplaces to 25% for the rental of pick-up points

The Federation Council has prepared a bill that will introduce a maximum market share for marketplaces and limit them from opening new locations if it is exceeded. This was reported by Forbes Chairman of the Federation Council Committee on Economic Policy Andrey Kutepov.

The initiative assumes that a limit of 25% of the volume of all online sales of goods for the previous financial year will be set for marketplaces. Mr. Kupetov outlined the main provisions of the draft law in a letter to Presidential Aide Maxim Oreshkin. RIA Novosti reported that the letter was sent last week.

“The activities of marketplaces are not subject to legislative restrictions on the acquisition or rental of additional space in retail facilities (market share). However, being, in essence, the same business entities engaged in the retail trade of food products as traditional retail chains, marketplaces receive competitive advantages and are not limited in opening or renting new points for issuing orders within the boundaries of the entities,” the letter says.

President of the Association of Internet Trade Companies (including Wildberries, Ozon, Yandex Market) Artem Sokolov called the Federation Council proposal “not only an excessive, but also a harmful initiative.” He believes that this idea is “economically unjustified and will have a negative effect both on the development of small and medium-sized businesses and on buyers.” The Federal Antimonopoly Service (FAS) has not yet received proposals to limit the share of marketplaces.

Currently in Russia a maximum share of 25% has been established for retail chains; restrictions apply within the boundaries of administrative-territorial entities. If this share is exceeded, the network cannot purchase or rent additional retail space within the boundaries of this entity for carrying out trading activities.

January 24 FAS installed collective dominant position of Wildberries and Ozon among marketplaces. The head of the department, Maxim Shaskolsky, said that the two companies occupy 80% of the market. FAS expects that marketplaces will voluntarily eliminate violations.

Details are in the Kommersant FM article. “Marketplaces played a monopoly”.

Laura Keffer