Hetq speaks with Mr. Markus Schneider Presiding Judge at District Court of Hamburg (Enforcement), and a specialist in unfair economic competition issues.

What dangers do monopolies pose for small nations like Armenia and what are the primary measures to be taken to combat it?

While I am not an expert in monopolies, in Germany there exists an anti-trust structuure that primarily deals with preventing such manifestations. But I can say that monopolies can pose both economic and cultural problems for a country.

Monopolies are problematic from a democratic perspective, as well from a human and political stance. It all comes down to just how strong the anti-monopoly agencies are in your country and whether they can prevent the creation of monopolies. The German anti-trust body is quite severe when dealing with such issues.

But aren’t such anit-monoply measures purely for show, when you have government official and MP’s who are engaged in business activities?

In Germany, the courts deal with such questions and the courts enjoy the highest degree of independence. A minister or other government official cannot exert any influence on the courts. The anti-monopoly agency also enjoys a fair degree of independence regarding its actions, but the main question of import is whether the entire sector is being regulated legislatively and to what degree are the laws being applied.

If there are laws on the books but they remain on paper, then it’s a tragedy. In Germany, without doubt, the laws must be applied.

Presently, the process of oligarichization is taking place throughout the world and is progressing at a fast clip in Armenia. Naturally, given this situation, the role of anti-monopoly structures takes on heightened significance.

Now, if government officials and MP’s, that’s to say the ones who are responsible for enacting anti-trust legislation and other measures, are also involved in business, then there’s a very entrenched problem here.

But I must say that based on what I have seen from your State Commission for Economic Protection my impression is that their work isn’t just for show.

Take for example the recent sour cream scandal. The Commission took the correct decision. Naturally what I have witnessed is just a tiny fragment of the entire picture you have amassed.

What about the fact that the owner of the sour cream company found violating the law is an MP? Then again, the company of another MP has been churning out knock-off vodka for years and the Commission’s decisions have no real effect?

This is a question dealing with legal culture. In the case where a real legal culture exists, the violating business owner should not be able to continue operating in such a manner if fined or shut down.

If a business continues to flout the law after being fined then I am at a loss how to describe the situation. The fines levied must be so prohibitive as to halt such behavior. They just can’t be at the level of another business expense.