OREANDA-NEWS. October 01, 2009. The Federal Antimonopoly Service (FAS Russia) will petition the Supreme Arbitration Court of the Russian Federation to confirm legitimacy of its decision and determination regarding "TNK-BP Holding" OJSC, issued in autumn 2008. On 29th September 2009, the Federal Arbitration Court of the West-Siberian District dismissed a cassation appeal of FAS Russia and the Tyumen Regional Prosecutor's Office against the judgments of the Court of the Fist and Appeal Instances, reported the press-centre of FAS Russia.

In autumn 2008, FAS Russia found that "TNK-BP Holding" OJSC violated Clauses 1, 6 and 8 Part 1 Article 10 of the Federal Law "On Protection of Competition".(which prohibits abusing dominant position). The Antimonopoly Service found that the company abused its dominant position on the markets of motor petrol and aviation kerosene by fixing monopolistically high prices, creating discriminatory conditions, setting economically and technologically unjustified price difference for wholesale buyers of oil products in summer 2008.

FAS Russia also issued a determination requesting specific actions from the company to stop the violations and eliminate its consequences. The oil company was fined 1.112 billion Rubles.

The decision regarding "TNK-BP Holding" OJSC was made as part of the first series of cases against the largest vertically-integrated oil companies that dominate wholesale markets of oil products with the aggregate share over 70%. FAS Russia also discovered antimonopoly violations committed by the group of persons of "Lukoil" OJSC, "Rosneft" Oil Company" OJSC and "Gazprom Neft" OJSC. All companies were fined in total more than 5 billion Rubles.

Judicial practice has been complex. On 24th June 2009, the Moscow Arbitration Court confirmed validity of the FAS Russia's decision and determination on a similar case against the group of persons of "Lukoil" OJSC, underlying the soundness of the evidence of abuse of dominant position collected by the antimonopoly authority. The cases against "Rosneft" Oil Company" OJSC and "Gazprom Neft" OJSC are being examined by courts.

Public data about judicial practice of antimonopoly cases show that FAS Russia and regional offices win 82% of legal proceedings against antimonopoly violators.

Also in summer 2008, as part of the new wave of cases against the same companies, FAS Russia found violations of the antimonopoly legislation that were committed in the first six months of 2009 in the wholesale market of oil products.

Anticompetitive actions of the companies resulted in a sharp increase of retail prices which has continued since May 2009. "TNK-BP Holding" OJSC and "Gazprom Neft" OJSC were fined 4.197 and 4.675 billion Rubles accordingly. The fines for other companies will be determined later.

Reference:
No.135-FZ Federal Law "On Protection of Competition" of 26th July 2006 Article 10. Abusing dominant position by an economic entity is forbidden:

1. An economic entity with dominant position is forbidden to exercise actions (lack of actions), that has resulted or can result in preventing, restricting, eliminating competition and (or) infringing the interests of other persons, in particular, the following actions (lack of actions):

1) Fixing, maintaining monopolistically high or monopolistically low goods prices;

6) Economically, technologically or otherwise unjustified fixing different prices (tariffs) for the same goods, unless otherwise provided for by the Federal Law;

8) Creating discriminatory conditions.