FAS Initiated Case against Danone Industry
OREANDA-NEWS. On 25th August 2009, the Federal Antimonopoly Service (FAS Russia) will investigate a case against "Danone Industry" Ltd., initiated for violating Parts 1 and 3 Article 11 of the Federal Law "On Protection of Competition", reported the press-centre of FAS Russia.
FAS Russia suspects that "Danone Industry" Ltd. violated the antimonopoly legislation in terms of fixing and maintaining prices (tariffs), discounts, Mar-ups (surcharges), and price additions, as in terms of coordinating economic activities of market participants by a commercial organisation.
In October 2008, "Danone Industry" Ltd. started producing drinking yogurt "7 Poleznykh Svoistv" in a new packaging (290 grams), with new flavours. In November-December 2008, the company conducted a promotion campaign, when TV commercials of the product indicated a recommended retail price at 19 Rubles 50 copecks.
Also, on sale is "Activia" drinking yogurt" produced by "Danone Industry" Ltd. in the packaging saying "Only 20 Rubles*"; the packaging has a note below the product name "*- a recommended price for sale in the Russian Federation".
According to FAS Russia, some retail chains were selling "Activia" drinking yogurt" at the price matching the recommended price, indicated on the product packaging. Thus, the actions of "Danone Industry" Ltd. have elements of violating the antimonopoly legislation in terms of coordinating economic activities of market participants, involved in retail distribution of the company's products.
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