OREANDA-NEWS. May 26, 2010. The 17th Arbitration Appeal Court confirmed validity of the decision made by the Office of the Federal Antimonopoly Service in the Sverdlovsk region (the Sverdlovsk OFAS Russia) and upheld the judgment of the Court of First Instance that "Yekaterinburggaz" OJSC had violated the antimonopoly law, reported the press-centre of FAS Russia.

On 9th November 2009 the Sverdlovsk OFAS Russia found that "Yekaterinburggaz" OJSC violated Clauses 4 and 5 Article 10 of the Federal Law "On Protection of Competition".

Having considered a case regarding "Evropeiskoye" CJSC, the Sverdlovsk OFAS Russia found the signs of violating the antimonopoly law by "Yekaterinburggaz" OJSC.

Also the Sverdlovsk OFAS Russia received a collective petition from residents of detached private houses in the "Evropeisky" development who had gas supply contracts with "Yekaterinburggaz" OJSC.

According to the complaint formulated in the residents' petition, in 2002 "Yekaterinburggaz" OJSC and owners of detached private houses in the "Evropeisky" development signed gas supply contracts. In June 2009 "Yekaterinburggaz" OJSC notified the gas consumers on invalidating the contracts and terminating gas supplies. Simultaneously "Evropeiskoye" Managing Company" CJSC offered the residents to enter into gas supply contracts.

"Yekaterinburggaz" OJSC is included in the Regional Register of economic entities with over 35% market share or having dominant position on the relevant goods market.

The Sverdlovsk OFAS Russia found that "Yekaterinburggaz" OJSC violated Clauses 4 and 5 Article 10 of the Federal Law "On Protection of Competition".

The company violated the law by creating a threat of terminating contract obligations for gas supply to the owners of residential houses in the "Evropeisky" development (gas consumers), which forced some of them to enter into contracts with "Evropeiskoye" Managing Company" CJSC, as well as evading a contract with a gas distributing organization - "Evropeiskoye" Managing Company" CJSC - for gas transportation to the population at the expense of gas supplier.

The Court of First Instance dismissed the claim of "Yekaterinburggaz" OJSC on invaliding the decision of the Sverdlovsk OFAS Russia.

The 17th Arbitration Appeal Court upheld the judgment of the Court of First Instance, which confirmed legitimacy and justness of the decision made by the Sverdlovsk OFAS Russia.

Reference:
Clause 5 Article 10 of the Federal Law "On Protection of Competition" prohibits an economic entity, that has dominant position on a goods (services) market, refusing enter into a contract without economic or technological reasons or evading contracts with particular buyers (customers) if there is a possibility for production or supplies of the goods in question.