OREANDA-NEWS. February 01, 2010. 370,000 Rubles was the fine imposed upon "Pharma" pharmacy in Tobolsk by the Office of the Federal Antimonopoly Service in the Tyumen region (OFAS Russia) for unreasonable mark-ups for essential and life-critical medicines, reported the press-centre of FAS Russia.

By the Order of the Governor, the Tyumen region has introduced maximum mar-ups for medicines. According to the Order, retail mark-ups for the medicines included in the List of vitally important and the most essential medicines cannot exceed 30% or 35%. However, "Pharma" Ltd. was selling such medicines in its pharmacy chain adding up to 50% mark-ups. The 50% retail mark-up is allowed only for the medicines that are not included in the List of vitally important and the most essential medicines.

Clause 10 Part 1 Article 10 of the Federal Law "On Protection of Competition" prohibits the companies that have dominant market position to violate pricing procedures established by normative legal acts. As "Pharma" Ltd. has the dominant position in the retail market of medicines in Tobolsk, the provision is applicable to the company. Under Article 14.31 of the Code of the Russian Federation on Administrative Violations, abusing dominant market position by legal entities is punishable by a fine from one hundredth to fifteen hundredth of the income obtained on the market where the violation was committed.

On 25th January 2010, the Arbitration Court of the Tyumen Region heard a case on a similar violation and ruled that the Tyumen OFAS Russia legitimately issued the decision and determination regarding "Nikopharm" Pharmacy" Ltd. The company, that dominates the market, was selling vitally important medicines with illegal mark-ups.

According to Dmitry Shalabodov, the Head of the Tyumen OFAS Russia, it is already the second fine imposed upon a pharmacy in the Tyumen region for unreasonable increase of prices for medicines. "As part of our quarterly monitoring, we continue observing the prices for medicines in the region. We would like to draw your attention that it concerns essential and vitally important medicines. They should be widely available and must be sold at real prices, which economic entities should fix following the order of the Governor of the Tyumen region and base on economic justification", said Mr Shalabodov.