OREANDA-NEWS. May 25, 2010. The 9th Arbitration Appeal Court confirmed validity of the decision and determination issued by the Federal Antimonopoly Service (FAS Russia) regarding "RZhD" OJSC, reported the press-centre of FAS Russia.

Earlier FAS Russia found that "RZhD" OJSC abused market dominance (Part 1 Article 10 of the Federal Law "On Protection of Competition"). The company was imposing a contract for passenger transportation services upon the owners of passenger rolling stock. The cost of this service was 9 % of the cost of carriage charges. "RZhD" OJSC also granted preferences to "RZhD-Tour" Ltd. and created obstacles to other legal entities involved in tourist carriage using their own or leased rolling stock for passenger carriage and (or) service.

The FAS Russia's decision establishes that "RZhD" OJSC, acting as a natural monopoly on the market of long-distance passenger transportation, violated:

- Clause 3 Part 1 Article 10 of the Federal Law "On Protection of Competition" - imposing contract conditions unfavourable to a counteragent or irrelevant to the contract subject (economically and technologically unjustified and (or) not directly provided for by the federal laws, normative legal acts of the President of the Russian Federation, normative legal acts of the Government of the Russian Federation, normative legal acts of the authorized federal executive bodies or judicial acts regarding transfer of financial funds, other property, including property rights, as well as consent to enter into contract on conditions of including in the contract some provisions about the goods in which the counteragent is not interested, and other requirements) (imposing a contract for passenger transportation services; under Clause 2.2 of the contract, the cost of the service is 9 % of the carriage charges);

- Clause 8 Part 1 Article 10 of the Federal Law "On Protection of Competition" (creating discriminatory conditions);

- Clause 9 Part 1 Article 10 of the Federal Law "On Protection of Competition" (preventing entry to the market of tourist transportation of legal entities using their own or leased rolling stock for passenger carriage and (or) service).

"RZhD" OJSC violated the law by refusing to provide passenger carriage in the rolling stock of "VagonRemService" Ltd. upon an application of the coach owner - "VagonRemService" Ltd. However, "RZhD" OJSC carried out transportation upon an application of "RZhD-Tour" Ltd. without advance payment of 9% of the carriage charges.

FAS Russia also gave its opinion of "RZhD" OJSC fixing additional conditions for carriage charges, set by the regulator of natural monopolies - the Federal Tariff Service.

The FAS Russia's determination to "RZhD" OJSC to stop the antimonopoly violation has taken legal effect and must be executed.