OREANDA-NEWS. January 20, 2010. The Federal Arbitration Court of the North-Caucasus District confirmed validity of the decision of the Rostov Office of the Federal Antimonopoly Service (OFAS Russia) regarding "Monolit" ITTs" Ltd. and "Rostoblzhilproekt" APM" Ltd., reported the press-centre of FAS Russia.

Earlier the Rostov OFAS Russia found that "Rostoblzhilproekt" APM" Ltd. and "Monolit" ITTs" Ltd. violated Part 1 Article 11 of the Federal Law "On Protection of Competition" (bid-rigging collusion) and imposed administrative fines upon the companies. "Rostoblzhilproekt" APM" Ltd. and "Monolit" ITTs" Ltd. violated the law in course of an auction for provision of gas supply to social facilities. They engaged in concerted actions and did not reduce the contract price for individual lots to the benefit of each other, effectively "dividing" the lots between themselves, which was in breach of the law.

Both companies filed claims to courts of different instances, which, however, were dismissed.

"Rostoblzhilproekt" APM" Ltd. must pay a 147,000 Rubles fine and "Monolit" ITTs" Ltd. is fined more than a million Rubles.

"In 2009 the Rostov OFAS Russia processed six antimonopoly cases against 21 economic entities for bid-rigging collusions on the auctions organized in the markets of engineering design, construction and coal supply. The imposed fines amounted to more than 20 million Rubles. In two cases the Courts agreed with the arguments put forward by the Rostov OFAS, legal proceedings on other cases continue", said Vadim Korneev, the Head of the Rostov OFAS Russia.

Reference:
Concerted actions among bidders that can lead (lead) to increasing, reducing or maintaining prices in competitive bidding- bid-rigging collusion, is one of the most dangerous violations of the antimonopoly law.

The antimonopoly bodies have repeatedly discovered bid-rigging collusions.

On 6th October 2009, the Altai Krai Office of the Federal Antimonopoly Service (OFAS Russia) discovered the fact of collusion between eight bidders for vegetable supplies.

On 14th October 2009, the Tyumen OFAS Russia found a bid-rigging collusion between "SibUniversal" Ltd. and "Atlantis" Ltd. Actions of the auction bidders resulted in minimum saving of the budget funds in the Tyumen region. The government contracts were signed at the price only 0.5 % below the original maximum price.

On 2nd November 2009, the Sverdlovsk OFAS Russia found that bribing other auction bidders by the auction winner constituted bid-rigging collusion. The Sverdlovsk OFAS Russia issued determinations to "Agroremstroi" Ltd., "Monolitstroi" Ltd. and "SPSMU-30" Ltd. to prevent concerted actions resulting in companies' not participating in competitive bidding.