OREANDA-NEWS. March 12, 2008. The Federal Antimonopoly Service (FAS Russia) initiated a case against the Moscow Government; the "Mosvodokanal" Moscow State Unitary Enterprise; the "Gormost" State Unitary Enterprise; the Department of the State Traffic Safety Inspectorate, the Main Directorate of Internal Affairs, Moscow; and the "Moscow City Electric Grid Company" OJSC for violating Part 1 Article 15 and Article 16 of the Federal Law "On Protection of Competition".

The case was initiated upon a petition of economic entities involved in water management in the basin of the Moskva River under the water management licenses and water use contracts, using motor vessels and (or) floating landing stages (berthing facilities) as floating hotels or restaurants.

The Moscow Government violated the law by creating unjustified obstacles for activity of economic entities. The Moscow Government; the "Mosvodokanal" Moscow State Unitary Enterprise; the "Gormost" State Unitary Enterprise; the Department of the State Traffic Safety Inspectorate, the Main Directorate of Internal Affairs, Moscow; and the "Moscow City Electric Grid Company" OJSC have been engaged in concerted actions that result in pushing economic entities from the goods market.

The above vessels and floating landing stages were positioned as agreed with and approved by the "Moscow Canal" Federal State Unitary Enterprise, the Moskva-Oka Basin Water Resources Board, Glavmosarkhitecturstroi, "Gormost", "Mosvodokanal" and other controlling and interested bodies and organizations.

The Moscow Government, however, took certain measures to remove the floating landing stages and other floating facilities from the basin of the Moskva River (the central part of Moscow). In particular, instructions were given to analyze the existing contracts for positioning, water supply, sanitation and power supply of the hotels, restaurants, gambling establishments and other objects of economic activity, located on floating landing stages and other floating facilities in the basin of the Moskva River in the central part of Moscow, as take measures to terminate the above contracts and revoke the licenses because positioning floating facilities in the basin of the Moskva River is inconsistent with the Master Plan of Moscow Development and damages the architectural image of the city.

To execute the instructions, The Moscow Government, in its turn, ordered the Prefecture of the Central Administrative District of Moscow, "Mosvodokanal", the Department of Housing and Public Utilities and Provision of Urban Amenities, Mosarchitectura and Mosenergosbyt to revoke the licenses for positioning floating facilities in the basin of the Moskva River in the central part of Moscow and contracts for providing engineering services to them.

To fulfill the orders, organizations and agencies, including those subordinate to The Moscow Government, undertook certain actions aimed at obstructing economic activity of the owners of floating landing stages: revoking licenses for placing floating landing stages and other floating facilities in the basin of the Moskva River in the central part of Moscow; preparing a petition to "Mosenergosbyt" OJSC on cutting power supply to the floating landing stages; giving instructions to free parapets on Frunzenskaya, Krasnopresnenskaya, Krumskaya and Berezhkivsksya embankments from the crossings (berthing facilities) to the floating landing stages.

The Moscow Government also gave the following instructions:

- the Department of the State Traffic Safety Inspectorate, the Main Directorate of Internal Affairs -put the signs forbidding car parking on the embankments near the floating landing stages and enforce the new requirements (including vehicles towing);
- to the Moscow Department of Housing and Public Utilities and Provision of Urban Amenities - to remove the floating landing stages;
- to "Mosenergosbyt" OJSC - disconnect the floating landing stages from engineering services.

The above instructions were followed by actions undertaken, in particular, by organizations and agencies subordinate to the Moscow Government, and aimed at obstructing economic activities of economic agents - owners of the floating landing stages and other floating facilities in the basin of the Moskva River.

On the basis of the presented materials and documentation, FAS Russia concluded that the Moscow Government; the "Mosvodokanal" Moscow State Unitary Enterprise; the "Gormost" State Unitary Enterprise; the Department of the State Traffic Safety Inspectorate, the Main Directorate of Internal Affairs, Moscow; and the "Moscow City Electric Grid Company" OJSC violated the antimonopoly legislation.