OREANDA-NEWS. April 07, 2009. The Federal Arbitration Court of the Moscow District confirmed legitimacy and relevance of the decision and determination issued by the Federal Antimonopoly Service (FAS Russia) regarding the Federal Service for Environmental, Technological and Nuclear Control (Rostechnadzor), reported the press-centre of FAS Russia. 

Rostechnadzor violated the antimonopoly legislation by unlawfully assigning some of its powers to a subordinate Federal State Enterprises "The Center for Laboratory Analysis and Technical Measurements" (FGU TsLATI).

In the end of 2007, FAS Russia investigated a case against Rostechnadzor and found that the Federal Service violated Article 15 "On Protection of Competition".

Upon processing the case, FAS Russia established that Rostechnadzor adopted normative acts and exercised actions that resulted or could have resulted in preventing, restricting or eliminating competition. From 2006, Rostechnadzor, under Article 20 of the Budget Code of the Russian Federation, and on the basis of several resolutions of the Government of the Russian Federation, has been assigning some of its powers for administering the charges for adverse impact upon the environment to FGU TsLATI.

In 2006, by order of Rostechnadzor, FGU TsLATI was also assigned the powers for keeping the Register of the entities and have adverse impact upon the environment. In course of the investigation of the antimonopoly case, FAS Russia received documents that this function was transferred back to Rostechnadzor.

Having received a new general authorization of the Ministry of Finances for extra-budgetary activities, Rostechnadzor included all kinds of environmental services in the Charters of the state-funded organizations subordinate to Rostechnadzor, which would provide the sources of raising extra-budgetary funds and using them. Such activities, included, in particular, services for preparing materials for justification of granting permits for waste discharge, disposal, as well as developing the standards and organizing environmental certification and environmental audit.

FAS Russia found that Rostechnadzor violated the antimonopoly legislation. Adopting the above acts and exercising actions restricted competition on the market of for preparing materials for justification of granting permits for waste discharge, disposal, as well as developing the standards and organizing environmental certification and environmental audit.

Based on its decision, FAS Russia issued a determination to eliminate the revealed violations. Particularly, in accordance with the statutory procedures, Rostechnadzor should introduce amendments to the General Authorization for opening accounts for the funds, gained through entrepreneurial or other profitable activities: the types of commercial activities that lead or can lead to preventing, restricting or eliminating competition under conditions of payment administration, must be excluded from the General Authorization. Those types of commercial activities must also be stricken off from the Charters of FGU TsLATI.

FGU TsLATI in the Central Federal District disagreed with the decision and determination of the antimonopoly authority and filed a lawsuit. The Moscow Arbitration Court, however, confirmed legitimacy and relevance of the FAS Russia's decision and determination; in particular, the Court pointed out that those non-regulatory acts did not infringe the rights and legitimate interests of FGU TsLATI in the Central Federal District. The Court of the Appeal Instance upheld the ruling of the Court of the First Instance; and the Court of the Cassation Instance validated the conclusions of the courts of lower instances and dismissed the cassation appeal of Rostechnadzor (participated as the third party).