Digital Market Monopoly Counterstrategies Proposed by FAS
In a significant move, Russia has adopted the Law on the Platform Economy, which empowers the Federal Antimonopoly Service (FAS) to regulate digital platforms more effectively and foster competition in the IT industry.
The new law, passed by the State Duma in July 2025, creates a regulatory framework aimed at establishing a transparent and safe digital platform environment. The FAS has been granted federal state supervision powers over platform economy legislation compliance, with some supervisory authority also given to Rospotrebnadzor.
One of the key impacts of these changes is increased regulatory scrutiny over digital platform operations, potentially limiting the abuse of dominant positions and unfair practices by powerful platforms. The law also provides a clearer legal framework for digital transactions, reducing bad-faith behaviors by sellers and creating a safer, more predictable environment for rights holders and consumers in IT markets.
However, there is uncertainty about the practical enforcement approach by the FAS, given the broad scope of the law’s provisions beyond traditional antitrust boundaries.
Maksut Shadaev, the Minister of Digital Development, has been a strong advocate for these changes. He believes that protective measures are necessary to develop the IT industry in Russia and that Russia must have its own competitive solutions in the IT sector. He also emphasized that after the departure of foreign vendors, they cannot rely solely on products from unfriendly countries.
Some protective measures already being implemented include tax preferences, deferment of military service, and IT mortgages. Spending on Russian software has increased more than 3.5 times over the past five years, with domestic software suppliers to Rosselkhozbank increasing prices ninefold after foreign IT companies left Russia.
These protective measures are aimed at reducing costs for companies and stimulating investment activity. The FAS hopes that the changes will help reduce digitalization costs, with the implementation of the "Economy of Data" national project alone requiring over 1 trillion rubles.
The bill was developed upon the instructions of Deputy Prime Minister Dmitry Grigorenko and is a continuation of the fifth antimonopoly package adopted in 2023. Despite the challenges posed by international sanctions, Russia is determined to strengthen its position in the global IT market.
References: [1] The Law on the Platform Economy: https://www.fas.gov.ru/storage/app/files/cms/documents/2025/07/14/1570719024_2025_zakon_o_platformnom_ekonomicheskom_oborote.pdf [2] EU Sanctions on Russia: https://ec.europa.eu/info/business-economy-euro/sanctions/sectors/russia_en [3] UK Sanctions on Russia: https://www.gov.uk/government/publications/uk-sanctions-against-russia/uk-sanctions-against-russia [4] Impact of Sanctions on Russia's IT Sector: https://www.reuters.com/business/sanctions/russias-it-sector-feels-sanctions-pain-despite-state-support-2022-03-14/ [5] Russia's New Antitrust Regulations for the Platform Economy: https://www.lexology.com/library/detail.aspx?g=2a85463d-652f-4535-9145-a6c7b661c38e
The new Law on the Platform Economy, passed in July 2025, is expected to have a significant impact on the business sector, especially in the IT industry, as it empowers the Federal Antimonopoly Service (FAS) to regulate digital platforms and foster competition. This legislation also aims to create a safer, more predictable environment for rights holders and consumers by providing a clearer legal framework for digital transactions and reducing bad-faith behaviors (politics, business, finance, general-news).
Due to the increased regulatory scrutiny over digital platform operations, there is uncertainty regarding the practical enforcement approach by the FAS, which has been given broad powers beyond traditional antitrust boundaries (politics, business, finance, general-news).
