Russian Marketplace Trends: Dominance and Growth

According to a recent report from our credible sources, insights provided by Peter Ivanov, Deputy Head of the Federal Antimonopoly Service (FAS), during a Federation Council roundtable meeting, have shed light on the dynamics within Russia’s marketplace.

Wildberries and Ozon Leading the Pack

Ivanov highlighted the dominance of the online retailers Wildberries and Ozon in Russia’s marketplace sector. Our insider findings reveal that these two players hold commanding positions with market shares of 47 percent and 35.5 percent respectively. These retailers’ current positions place them under stringent regulations designed to prevent the exploitation of a dominant market position outlined in Russia’s competition protection laws.

Significant Increase in Trade Turnover

During the same meeting, Ivanov shared noteworthy stats pointing towards substantial economic growth within Russian marketplaces. Based on our source’s revealed data, the trade turnover within these platforms has impressively climbed seven times over, from 167 billion to a stunning 1.214 trillion rubles, between 2021 and the third quarter of 2023.

The Rise of Unique Sellers

Concurrently, these platforms have experienced a massive surge in unique sellers—a term that encompasses organizations, self-employed individuals, and sole proprietors. Recent reports from our sources indicate that the number of these unique sellers has explosively grown, reaching up to700 thousand.

Apple Facing the Largest Antitrust Fine in Russia for 2023

During the roundtable discussion, the American technology giant Apple also bore mention. According to Ivanov, the company paid the largest antitrust fine in Russia for the year 2023. This hefty fine, amounting to 906 million rubles, was levied against Apple due to the abuse of its dominant position in the mobile application market, specifically pertaining to its iOS operating system.

Conclusions

• Receiving insights directly from our credible sources allows for a deep understanding of Russia’s marketplace. It’s clear there’s a significant shift, seeing the dominance of head-runners such as Wildberries and Ozon.
• However, with dominance comes heightened responsibility and regulatory oversight. These companies must adhere to competition laws designed to prevent abuses of power amidst their marketplace rule.
• The rapid expansion in trade turnover and the number of unique sellers shows a vibrant and flourishing Russian online retail market.
• The hefty fine levied against Apple serves as a stark reminder to tech firms that monopolistic abuses will not be tolerated, irrespective of the stature of the company.