OREANDA-NEWS. On December 05, 2007 the Federal Arbitration Court of the Moscow District dismissed a cassation appeal of "Dal'szyaz" OJSC, which asked to recognize invalidity of the decision and determination issued the Federal Antimonopoly Service (FAS Russia) regarding monopolistically high prices set by "Dal'szyaz" OJSC on the market of communication network connection services, reported the press-centre of FAS Russia.

On 17th November 2005 FAS Russia recognized that "Dal'szyaz" OJSC breached Clause 1 Article 5 of the "federal law "On Competition and Restricting Monopolistic Activity on the Goods Markets".

The case was initiated upon the complaint of "Primtelephon" CJSC (offering service of mobile wireless telephony и under the "MTS" brand).

"Dal'szyaz" OJSC breached the law by setting and maintaining monopolistically high prices and creating such entry conditions to the goods market that put one or several economic entities in an unequal position in comparison with another or other economic entities.

Having considered the case, FAS Russia issued a determination to "Dal'szyaz" OJSC requesting to:

- Exclude the "communication networks empowering " rates from the price-lists of communication services for the operators;

- Introduce amendments to the Connection and Inter-Network Interaction Agreements, signed with "Primtelephon" CJSC, excluding provisions for paying the "communication networks empowering " rates;

- Send offers to other operators of connected networks on excluding the provision for paying the "communication networks empowering" rates from the Connection and Inter-Network Interaction Agreements, signed with "Dal'szyaz" OJSC.

"Dal'szyaz" OJSC disagreed with the decision and determination of the antimonopoly authority and appealed.

The courts of all instances, however, confirmed legitimacy and validity of the decision taken by FAS Russia.

In addition, "Dal'szyaz" OJSC was issued a determination to transfer to the federal budget the income gained as a result of violating the antimonopoly legislation - over 200 mln. Rubles. "Dal'szyaz" OJSC also filed an appeal to the arbitration court against this determination, which initially was revoked by the court. However, the Federal Arbitration Court of the Moscow District revoked previous judgment of the courts of the first and appeal instances and remanded the case for reconsideration.

At a new hearing, the courts confirmed validity of the position taken by the antimonopoly authority.

Therefore, after continuous court proceedings the FAS Russia's determination finally came into force. On 1st November 2007, "Dal'szyaz" OJSC informed FAS Russia that the company transferred 205.767.523 Rubles of illegally obtained income to the federal budget.

At a new appeal hearing, the Court of Cassation also confirmed validity of the decision and determination issued by the antimonopoly authority to "Dal'szyaz" OJSC.