OREANDA-NEWS. October 14, 2010. The Commission of OFAS Russia of the Altai Region announced substantive provisions of its decision: to recognize that the companies were exercising concerted actions and to issue determinations to the violators requesting to stop the antimonopoly violations, reported the press-centre of FAS Russia.

On 7th October 2010, the Office of the Federal Antimonopoly Service (OFAS Russia) in the Altai, region considered a case against “Molodezhnaya” Poultry Plant” AKGUP and “Komsomolskaya” Poultry Plant” Ltd. on concerted actions.

The case against “Molodezhnaya” Poultry Plant” AKGUP and “Komsomolskaya” Poultry Plant” Ltd. was initiated on the basis of analysis carried out by experts of OFAS Russia upon receiving the latest update about forthcoming increase of prices for chicken eggs.

As established by experts of Altai Regional OFAS Russia, the two largest poultry plants in the region fixed the same prices for chicken eggs with a 1-day time gap (31st August– 1st September): 27 Rubles for ten premium grade eggs, 26 Rubles – for 1 grade; and 23 Rubles – for 2nd grade eggs.

Representatives of the poultry plants did not admit the collusion explaining price increase by the seasonal factor and stated that the same level of prices had simply been a coincidence. However, the Commission of the antimonopoly body did not accept absolute “matching” of prices as a valid argument. Analytical research of Altai Regional OFAS Russia, including the cost structure of the products of both poultry plants, confirmed that the companies did not have any objective reasons to fix the same prices.

OFAS will also open administrative proceedings against two companies under Article 14.32 of the Code of the Russian Federation on Administrative Violations.

“Molodezhnaya” Poultry Plant” and “Komsomolskaya” Poultry Plant” produce over 50% of chicken eggs in the Altai region, so they have a possibility to influence the overall situation with process for these products. The companies must remember this and operate only within the rules of fair competition”, commented the outcome of the case the Head of Altai Regional OFAS Russia Stepan Pospelov.

Reference:

Under Article 14.32 of the Code of the Russian Federation on Administrative Violations, if an economic entity concludes an agreement prohibited by the antimonopoly law of the Russian Federation, participated in such agreement or an economic entity exercises concerted actions prohibited by the antimonopoly law of the Russian Federation, it is punishable by an administrative fine upon executive officials – from 20,000 to 50,000 Rubles or disqualification for a period up to three years.