OREANDA-NEWS. August 05, 2010. The Federal Antimonopoly Service (FAS Russia) found that the Savings Bank of Russia OJSC; "Odinbank" Municipal Commercial Bank (Ltd.); "Russian Post" Federal State Unitary Enterprise, "Information-Computing Centre" Municipal Unitary Enterprise, Odintsovo Town, Odintsovo Municipal District, Moscow Region; "Housing Authority" Municipal Unitary Enterprise, Odintsovo Town, Odintsovo Municipal District, Moscow Region; "Odintsovo Heating Network" OJSC, "Transinzhstroi" SEU" OJSC and "Odinstovo Vodocanal" OJSC violated Part 2 Article 11 of the Federal Law "On Protection of Competition" (prohibiting competition - restricting agreements between economic entities), reported the press-centre of FAS Russia.

These organizations violated the law by entering into tri-lateral written agreements, which approved the form of a payment document (notice statement),on the basis of which residents of more than 250 apartment blocks in Odintsovo had to pay for housing and utilities services.

Instead of payee's banking details, the payment document had identification bar-codes for each supplier of housing and utilities services.

Due to absence of banking details, credit organizations that were not parties to the tri-lateral agreements but had their branches in Odinstovo and had technical possibilities and willingness to provide banking services to the residents for accepting and transferring money for payment for housing and utilities services, in practice were unable to provide such services.

Odinstovo residents could pay for housing and utilities services only at the Savings Bank of Russia OJSC, "Odinbank" Municipal Commercial Bank (Ltd.) and "Russian Post" Federal State Unitary Enterprise.

In view of the above, the FAS Russia's Commission, which comprised on parity basis representatives of the Central Bank of the Russian Federation, concluded that such tri-lateral agreements had led to restricting competition in the field of payments for housing and utilities services.

In course of the case investigation, the violators changed the form of the payment document, including in it all payee's banking details necessary for cash and non-cash payment. The FAS Russia's Commission recognized the fact of voluntary elimination of the antimonopoly violation and its consequences and did not issue determinations to the respondents.

Upon examining the case materials, FAS has established that the tariffs for housing and utilities services fully or partially comprised the costs of utility companies for payment for the services of the Savings Bank of Russia OJSC, "Odinbank" Municipal Commercial Bank (Ltd.) and "Russian Post" Federal State Unitary Enterprise (on average 2% of the sum of payment), as well as the services of the "Information-Computing Centre" Municipal Unitary Enterprise (4% of the sum of payment) incurred through performance of the tri-lateral agreements.

In the opinion of the FAS Russia's Commission, including these costs in the tariffs for housing and utilities services is not justified and can lead to restrictions of competition, because it puts the above economic entities in preponderant position on the relevant market in comparison with their competitors.

The FAS Russia's Commission concluded that actions of the tariff bodies that had approved such tariffs for housing and utilities services (the Ministry of Economics of the Moscow Region, the Fuel-and-Energy Committee of the Moscow Region and the Legislature of Odintsovo Town, Odintsovo Municipal District) has signs of violating Part 1 Article 15 of the Federal Law "On Protection of Competition".

Upon initiating antimonopoly case, FAS will make a decision on the fact of absence of antimonopoly violations in the above actions of the authorities.

Reference:
Part 2 Article 11 of the Federal Law "On Protection of Competition" prohibits other agreements between economic entities (except "vertical" agreements that can be allowed under Article 12 of the Federal Law) or other concerted actions between economic entities, if such agreements and concerted actions have resulted or can result in restricting competition.

Part 1 Article 15 of the Federal Law "On Protection of Competition" prohibits federal executive bodies, the authorities of the constituent territories of the Russian Federation, local self-government bodies, other bodies or organizations exercising the functions of the above bodies as well as state extra-budgetary funds, the Central Bank of the Russian Federation, to pass acts and (or) exercise actions (omissions) that have resulted or can result in preventing, restricting or eliminating competition, except the cases for adopting such acts and (or) exercising such actions (omissions) that are provided for by the federal legislation.