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Cancelling roaming in the EAEU 

On October 29, 2021, the EEC Council considered the issue of adopting a Plan for introducing fair roaming tariffs in the EAEU Member States. Arman Shakkaliev explained what specific measures the Plan included and spoke about the stages of its implementation.

"The cancellation of roaming is on everyone's lips; its purpose is to meet the needs of ordinary citizens. It is an opportunity to go on a visit and make calls at a domestic tariff. As concerns international practice, roaming is canceled almost all over the world. For example, roaming has been canceled in Europe, the Andean Community (since January 1, 2022), the South American Community, North America. While considering this plan, we discussed it with all stakeholders: both operators and government authorities. We had a lot of doubts and questions. Most of the doubts concerned the economic feasibility, the losses that financial operators may incur. State regulators had questions related to the technical

implementation of this issue, with a difference in legislation," Arman Shakkaliev said during the interview.

Nevertheless, the Commission has developed a flexible and balanced action plan that addresses three main issues.

"Firstly, when considering the issue of roaming, fraud cases come to notice. This fraud is related to using the so-called SIM-box: the call is routed to the line where the tariff is lower. We have created a special working group. There is a clear understanding of how to implement it technically so that to avoid fraud during interconnection," the speaker explained.

The second issue is related to good practice.

"For example, if a citizen of Kazakhstan stays in Russia, for how long such a stay should continue: 30, 60, 90 days? All these issues were discussed. But we came to the conclusion that particular requirements for staying are needed, and they must be unified. Operators are also directly involved in this process. Thirdly, the most pressing issue is the rate, namely the rate for interconnection, in international traffic. We proceeded from the experience of Russia and Belarus. For example, the cost of a service between Russian and Belarusian operators varies around 2–3 Russian rubles (the final cost of communication services in roaming for subscribers is 5 rubles). Certainly, the question arose about the time tariffing. Having discussed all these issues, we have prepared activities in several stages," Arman Shakkaliev explained.

According to the Member of the Board of the Eurasian Economic Commission in charge of Competition and Antitrust Regulation, roaming in the EAEU is planned to be canceled by 2025.

"Given the complexity of this issue, we have determined for ourselves that the tariffs for cellular services in roaming within the EAEU countries will be close to the "domestic" ones by 2025. It would seem like a long wait, but the time will fly by very quickly. It has taken the European Union ten years to resolve this issue, the other countries have also spent some time. In our opinion, the most important thing is that we have moved forward on this issue. Currently, we are working persistently together with operators to reduce the tariffs, to bring the tariff rate to the closest possible domestic tariff. The initiative of Askar Mamin, Prime Minister of

Kazakhstan, will be implemented, and we hope that even ahead of schedule," the guest of Kazinform explained.

Investigations in digital markets The Commission launched three proactive investigations in digital markets this year. As of today, the investigations have been completed. Arman Shakkaliev explained what competition-related problems exist.

"The difficulties in conducting investigations were in the methodology for assessing the state of competition. The methodology we use is tooled primarily for traditional product markets, and in practice, we encountered some peculiarities in determining the geographic and product boundaries of digital markets. Nevertheless, we understand the necessity of adhering to the current regulatory framework while accounting for the specific features of digital markets during the investigation," notes Arman Shakkaliev, Member of the Board of the Eurasian Economic Commission (EEC) in charge of Competition and Antitrust Regulation.

The speaker announced the results of three investigations carried out. The first investigation concerns the market for providing aggregate demand data on passenger and baggage transportation by passenger taxis.

"Today we all use taxis. When we conducted our investigation, we wanted to understand whether the new economic conditions were objective reality? We reorganized taxi depots, and a lot of the taxi drivers felt dissatisfied. They believe that the previous system was good as they did not have any intermediaries, clients called them directly and ordered a taxi. Consumers say they don't need any taxi depots. Taxi depots are a return to the past: it is inconvenient and economically unprofitable. Opinions differ. The uniqueness of the taxi aggregator market is that the service for aggregating the passenger transportation demand is rendered using a digital platform. Taxi aggregators that render their services using a digital platform in one country may also provide services in another, and during the investigation, we identified similar aggregators registered in third countries. Accordingly, the market for providing data on the aggregate demand for the passenger and luggage transportation by passenger taxis is transboundary," says the Member of the EEC Board in charge of Competition and Antitrust Regulation. "However, in most cases, the very service of passenger

and baggage transportation by taxi is characterized and restricted by regional geography, since the feasibility of service rendering is restricted by a certain distance between a potential passenger and a driver and the corresponding time required to deliver a car to a passenger. That is, in most cases it can be a specific city – Nur-Sultan, Yerevan, Moscow – or some small region. Therefore, the passenger and baggage transportation market cannot unambiguously and reliably be called transboundary. At the same time, the behavior of some aggregators shows signs of economic activity coordination in terms of setting prices and tariffs for passenger transportation by taxi, however, one part of the identified aggregators renders services only in one Member State of the Union, and the other part is characterized by economic entities registered in third countries. In view of these circumstances, the investigation records were sent under jurisdiction to the authorized authorities of the Union Member States," A. Shakkaliev explained.

The second case, as the interlocutor informed, was related to advertising in search results.

"It was a unique, large investigation, a large amount of information had to be requested. It was noted that according to the results of search queries, the services that are connected with a given search engine are often on its first line. What does it mean? For example, if a person types a query "buy some food", those services that are affiliated, connected and are "under the same umbrella" with the search engine pop up, that is, these services are given the opportunity of priority display. Many platforms (business entities – owners of these platforms) are non-residents of our countries, who are located outside our Union. At the same time, the investigation allowed for establishing a dominant position of one economic entity within one Member State, respectively, the investigation records were sent under jurisdiction of the authorized authority of this EAEU Member State," the speaker informed.

The third investigation was related to the payment systems used in mobile app stores based on the respective operating systems.

"The investigation revealed some anti-competitive practices of imposing particular payment systems on

mobile application developers and the lack of technical ability to use alternative payment instruments. Moreover, all revealed economic entities are subjects of third countries' jurisdiction. In such an exceptional legal case we have no competence, we cannot bring them to justice. In fact, it is a serious legal problem that we need to settle. Since there are unequal conditions for import platforms as they can violate the transboundary market and go unpunished. Currently, we are already preparing the necessary changes, but it does not mean that these questions will remain unanswered. We have sent the investigation records under the jurisdiction of the national authorized authorities, which exercise their competence and can prosecute. We have made some relevant conclusions. The most important thing we have achieved is that violators are self-correcting; they are changing their trade and sales policy, corporate service-render policy. The problem is being raised," Arman Shakkaliev assured.

All these cases are legally significant actions showing what improvements in the EEC's activities are required. This year, the Commission prepared a survey on competition regulation in digital markets, including relevant conclusions and proposals for improving the EAEU's regulatory framework. Digitalization of public procurement This year has been a landmark for the public procurement in the EAEU countries. In particular, the Rules for Determining the Country of Origin of Industrial Goods to be Used in the Public Procurement have come into force. The Register of Industrial Goods for Public Procurement Purposes was launched. Why are our manufacturers and businessmen interested in public procurement? Arman Shakkaliev answered this question.

"Due to the opportunity to participate in it (public procurement – notice). They are most interested in equal competitive conditions and availability of simple procedures. I shall be honest, the Union countries were often lacking in such conditions. We have developed some rules to ensure that all legislations are harmonized with each other. The most important factor is that the goods are produced within the Union," explains Arman Shakkaliev, Member of the Board of the Eurasian Economic Commission in charge of Competition and Antitrust Regulation. "The list of operations, which we have agreed with manufacturers, allows us to talk about industrial cooperation. For example, a car is a serious product with lots of components. Its welding, painting, components can be Russian, a battery, radiator and other components can be from our country. In aggregate, gaining a certain number of points, you comply with the requirements of these rules, receive an

examination certificate, enter the Register of Industrial Goods, and get access to the public procurement. What is the reason for simplicity? Clarity of requirements, uniformity, timing. Most importantly, all procedures can be performed in electronic format. I think that the rules are really breakthrough; now, we are expecting the effect. We have five countries – five suppliers. It is good enough already, it is serious competition, which allows for choosing price and quality. This was the purpose of establishing the Union – to ensure free flow of commodities. I am sure that the number of participants included in the Register will increase. On this occasion, I would like to focus the attention of our manufacturers on the need to use these opportunities," Arman Shakkaliev noted.

Cooperation with international organizations The Eurasian Economic Commission promotes international cooperation. The speaker told about the activities which the EEC carries out jointly with other international organizations.

"This year, in the year of the 30th anniversary of its Independence, Kazakhstan presides over all authorities of the Union – in the Supreme Council at the level of Heads of States, in the Intergovernmental Council. As the presiding party, Kassym-Jomart Kemelevich set the clear task of cooperating with international organizations to create product sale opportunities so that we could expand the area and geography of our interaction on the principles of economic pragmatism. It is a free trade area, and an issue related to Israel is under consideration, the actualization of a free trade area with Iran," the speaker noted. "This year we have become full members of the International Competition Network. This enables us to interact for the efficiency of the investigation. The UNCTAD (United Nations Conference on Trade and Development) is an important platform where we announced a number of important initiatives, in particular combating transnational cartels. Cartels are a negative phenomenon that should be fought at a global level. Besides, we cooperate with the OECD (Organization for Economic Cooperation and Development). The OECD was reviewed. We worked very intensively and fruitfully. What this review is good for is an outside perspective, which indicates how efficient the system is. We will receive appropriate recommendations to take into account in our activities. Speaking about international cooperation, we, first of all, mean the opportunities it provides for the economy. Uzbekistan and Cuba received the Observer State status at the EAEU. In this regard, the Commission actively uses different formats in order to promote its interests in cooperation with external partners," Arman Shakkaliev informed.

"Speaking about international cooperation, we, first of all, mean the opportunities it provides for the economy. Uzbekistan and Cuba received the Observer State status at the EAEU. In this regard, the Commission actively uses different formats in order to promote its interests in cooperation with external partners," A. Shakkaliev stressed during the interview.

Note that the EAEU has been operating since January 1, 2015. At the end of the interview, Arman Shakkaliev noted the achievements of Kazakhstan on the integration track over the years of its Independence. Kazakhstan has achieved a lot over the years of its independence. At the political council of the Nur Otan party, Elbasy Nursultan Nazarbayev clearly outlined the multi-vector approach, economic pragmatism and openness of the country. According to Arman Shakkaliev, the key achievement is that our country has fully established relations with its neighbors both in terms of the border and in other areas.

"The most important achievement is the initiative of Elbasy Nursultan Nazarbayev, First President of the Republic of Kazakhstan. It was he who proposed to create the Eurasian Economic Union. What are we guided by? Firstly, it is a sales market, an opportunity to fulfill our transit potential. Since the creation of the Union, our trade with the five countries has significantly increased. Trade turnover has increased by 25%, which is about USD 20 billion. At the end of eight months of 2021, exports to the Union countries increased by 38%. Free movement of goods is ensured through a unified technical regulation, goods safety. Serious work is being done to remove barriers, today 80% of the barriers have been removed. By the way, as part of the initiative of Askar Mamin, Prime Minister of Kazakhstan, a new methodology was adopted, which reduced the term for considering the problem to 70 days, increasing the efficiency," the speaker explained.

As for the transport and transit potential, it can be noted that container traffic increased by 38%. The speaker also focused on the importance of overland routes.

"We all saw the large-scale consequences of the congestion in the Suez Canal. The relevance of land and rail transportation is increasing nowadays. In Kazakhstan, we have implemented such large-scale projects as Nurly Zhol, there is a Western Europe – Western China transport corridor. This year, we have a significant initiative to create wholesale distribution centers developed to reduce the storage and transportation costs. Increasing the transit potential is our key achievement. I would like to notice the initiatives of Kazakhstan. In particular, the "Work without Borders" digital project was launched. It involved 50 thousand registered users,

about 3 thousand of whom received concrete job offers. The Union's key activities are aimed at ensuring free movement of people, employment, and this project was developed for people," Arman Shakkaliev summed up.