OREANDA-NEWS. October 01, 2009. The Tuymen Office of the Federal Antimonopoly Service (OFAS Russia) found that "Pharma" Ltd. violated Clause 10 Part 1 Article 10 of the Federal Law "On Protection of Competition" (which forbids abusing dominant position). Ignoring the pricing procedures for the life-saving medications, the pharmacy chain was selling them at overrated prices, reported the press-centre of FAS Russia.

Following the instructions of the Governor of the Tyumen region, the authorities fixed the limit mark-ups to medications in the Tyumen region. The mark-up to retail prices of the medications included in the List of essential and life-saving medications, must be no more than 30% - 35%. However, in the pharmacy shores of "Pharma" Ltd. the mark-up for such medications was up to 50%.

Such a mark-up is allowed only for the medications that are not vitally essential.

Clause 10 Part 1 Article 10 of the Federal Law "On Protection of Competition" prohibits the companies with dominant position to violate the pricing procedures established by the normative legal acts.

This statutory norm applies to "Pharma" Ltd. because the pharmacy chain has the dominant position in the retail market for medications in Tobolsk.

At the case hearing, a representative of "Pharma" Ltd. admitted the company's guilt. He explained that the pharmacy chain had increased prices because it had wrongly interpreted the order of the Governor of the Tyumen region, and as a result the company had committed the violation. The Tyumen OFAS Russia issued a determination to "Pharma" Ltd. to eliminate the violation and it consequences.

The Tyumen OFAS Russia discovered similar signs of pricing violations in the actions of "Apteka Nikopharm" Ltd. OFAS Russia initiated antimonopoly proceedings, the case will be heard in October.

On 22nd September 2009, the Tatarstan OFAS Russia fined the General Director of "Rodnik" Ltd., Mr Churkin, 50,000 Rubles for a similar violation.

In breach of the Law, the retail mark-up in a branch of "Rodnik" Ltd. for the "Momat" (Mometasone) cr?me 0.1% 5 g., which is included in the List, was 27%. However, in accord with the Decree of the Cabinet of Ministers of the Republic of Tatarstan "On Setting Trade Mark-Ups for Selling Medications in the Republic of Tatarstan", the limit mark-up for the medications included in the List of essential and life-saving medications, must be no more than 25% to the ex-works (purchasing) price without VAT.

On 21st September 2009, the Tomsk OFAS Russia imitated a case against "Mo.31 Central District Pharmacy" Municipal Enterprise for the elements of violating Article 10 of the Federal Law "On Protection of Competition" (abusing dominant position).

According to a decree of the head of the Tomsk regional Authority, municipalities in the districts equal to the districts of the Far North, have the limit retail mark-ups for the medications included in the List of essential and life-saving medications (except narcotics and psychotropic substances) at 32% and 43%. For all other medications "Mo.31 Central District Pharmacy" Municipal Enterprise had retail sale of "No.5 Diclophenac 25mg/ml" with 41.9% mark-up, and "No.10 Cough Lozenges" - with 44.4% mark-up.

The pharmacy is included in the register of economic entities with more than 35% market share for a particular goods, because is has dominant position on the market of retail sale of medications, products of medical purposes and related goods, with the market share over 50% within the geographic boundaries of the Verkhneketsky District.

Article 10 of the Federal Law "On Protection of Competition" prohibits actions of an economic entity with dominant position that have resulted or can result in breaching the pricing procedures established by the normative legal acts.

Based on the quarterly monitoring of retail prices for the 100 medications of most demand by the population, carried out under the instructions of the Government of the Russian Federation, the Tyumen region, the Republic of Tatarstan and the Tomsk region are included in the list of 22 regions where the Antimonopoly Service discovered that real retail mark-ups for medications had exceeded the maximum allowed mark-ups.