Ritual Enterprise Abused Its Dominant Position on Market
OREANDA-NEWS. On October 03, 2008, the Saratov Office of the Federal Antimonopoly Service (OFAS Russia) recognized that the "Ritual" Municipal Unitary Enterprise (Volsk) abused its dominant position on the market of funeral services in Saratov and issued a determination to eliminate the violations, reported the press-centre of FAS Russia.
Earlier the Saratov OFAS Russia received complaints from individual entrepreneurs against the actions of the "Ritual" Municipal Unitary Enterprise (Volsk). The entrepreneurs complained that the company was forcing them to enter into the contracts for ceremonial services under the threat of forbidding offering ceremonial services and installing tombstones at the Volsk municipal cemetery.
Investigating the case, the Saratov OFAS Russia established that under the contract between the Volsk municipal authority and the "Ritual" Municipal Unitary Enterprise, the company undertook obligations to maintain the municipal cemetery out of the funds obtained by selling ceremonial services on the relevant market in Volsk.
In March 2008 "Ritual" sent letters to individual entrepreneurs, operating on the same market, proposing to sign a contract. In its letters, "Ritual" also informed the entrepreneurs that in the absence of such a contract they would not be allowed to install tombstones and offer ceremonial services at the municipal cemetery from April 2008.
Part 1 Article 10 of the Federal Law "On Protection of Competition" prohibits actions (lack of actions) by an economic entity with dominant market position that result or can result in preventing, restricting or eliminating competition and (or) infringing the interests of other persons.
Having considered the case, the Saratov OFAS Russia concluded that the "Ritual" Municipal Unitary Enterprise violated the antimonopoly legislation. According to the issued determination, the company must withdraw the letters sent to individual entrepreneurs and stop imposing contracts upon economic agents.
Any coordination of installing tombstones must be in accordance with the Resolution of the Head of the Volsk Municipal Authority, and the company cannot issue permissions for installations of gravestones.
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