OREANDA-NEWS. On September 02, 2008, the 13th Appeal Arbitration Court recognized the rightness of the requests made by the Office of the Federal Antimonopoly Service in the Kaliningrad region (OFAS Russia) to "KD Avia" OJSC, reported the press-centre of FAS Russia. 

The Court confirmed that setting different rates for the same services and imposing contract terms upon a customer, that are not in the customer's interests, constitute antimonopoly violations.

18 months ago, in March 2007, Mrs К. submitted a complaint to the Antimonopoly Office regarding considerable difference in the airfares set by "KD Avia" OJSC. The petitioner had paid 85% more for the airfare from Moscow to Kaliningrand then from Kaliningrad to Moscow. The essence and the quality of the services remained the same.

Having investigated the procedures for client services and the system of rate codes, applied by the air carrier, the Kaliningrad OFAS Russia concluded that the actions of "KD Avia" had violated Article 10 of the Federal Law "On Protection of Competition", which prohibits economically, technologically or otherwise unjustified setting of different prices (rates) for the same goods and imposing unfavourable contract terms upon a counteragent.

The Antimonopoly Office issued a determination to "KD Avia" OJSC requesting the company to use justified rates. Within three months upon receiving the determination, "KD Avia" was obligated to complete calculations of economically, technologically and otherwise justified airfares. It was also requested that the air carrier should stop imposing transportation contracts upon prospective passengers that infringe their interests. To that purpose, within six months "KD Avia" shall introduce changes to the system for selling tickets under different rate codes and eliminate unreasonable restrictions on the number of tickets.

The Kaliningrad OFAS Russia also requested the air carriers to prevent infringement of consumer interests, and ensure that ticket offices have complete information regarding the conditions for applying rate codes and space availability.

Experts of "KD Avia" OJSC disagreed with the decision of the Antimonopoly Office and appealed to the Arbitration Court of the Kaliningrad region, which found the acts of the Kaliningrad OFAS Russia invalid.

The Kaliningrad OFAS Russia was able to prove its rightness at the 13th Appeal Arbitration Court. The ruling of the Appeal Court means that the decision and determination issued by the Antimonopoly Office finally come into force.

FAS Russia believes that the court ruling will constitute an important precedent of legitimate suppression of monopolistic actions of large companies that infringe consumer interests.