OREANDA-NEWS. October 02, 2009. The Federal Antimonopoly Service (FAS Russia) sent letters to the companies, that have the leading positions on the market of producing audio-visual works in the Russian Federation, about compliance with the current antimonopoly legislation. According to the information obtained by the Antimonopoly Service, in Q4 2008, seventeen companies* made a decision to form the Association of Tele- and Film Producers, reported the press-centre of FAS Russia.

In course of negotiations for creating the Association, participants talked about dividing physical persons, individual entrepreneurs, legal entities, engaged in production of tele- and film works, in conditional categories in order to set price limits for the services, as well as absolute limit price, and synchronized reduction of prices for the provided services by all members of the Association.

Such actions can be considered as concerted because they are known in advance to all members and the outcome meets the interests of every member.

As the Association has not been formed and, according to the information available to FAS Russia, those organizations are not currently exercising concerted actions for setting the rates for the services of counteragents engaged in production of tele-and film works, the Antimonopoly Service only sent letters regarding compliance with the current antimonopoly legislation.

In its letters FAS Russia explained the provisions of the Law "On Protection of Competition" and the consequences of violating the antimonopoly laws, particularly, penalties under Part 1 Article 14.32 the Code of the Russian Federation on Administrative Violations.

FAS Russia warned the companies about possibility of repeated inspection of their activities as well as activities of the Association of Tele- and Film Producers (if registered in accordance with the statutory procedures) for compliance with the antimonopoly legislation if FAS Russia received additional information about the signs of concerted actions.

* "Amedia" CJSC, "Vsemirnie Russkie Studii" CJSC, "Ostankino" TV Company" CJSC, "Central Partnership" CJSC, "Lean-М" Producer Centre" Ltd., "Tvorcheskoe Televisionnoe Obyedinenie" Ltd., "Star Media Pro" Ltd., "Studia 2V" Ltd., "Mostelefilm" TV Company" Ltd., "Feniks-Film" Ltd., "United Multimedia Projects" Ltd., "Direktsia Kino" CJSC, "STV" Film Company" Ltd., "Telealliance Media Group" CJSC, "GlavRed" Ltd, "Igor Tolstunov" Producer Firm" Ltd., "Teleproekt" Ltd.

Reference:
Clause 1 Part 1 Article 11 of No.135-FZ Federal Law "On Protection of Competition" of 26th July 2006 prohibits agreements between economic entities or concerted actions of economic entities in the goods market, if such agreements or concerted actions lead or can lead to fixing or maintaining prices (tariffs) discounts, surcharges, mark-ups.

Part 3 Article 11 of No.135-FZ Federal Law "On Protection of Competition" of 26th July 2006 prohibits coordination of economic activities of market participants by physical persons, commercial organizations and non-commercial organizations if such coordination lead or can lead to the consequences specified in Part 1 Article 11.