OREANDA-NEWS. October 21, 2010. The Federal Arbitration Court of the North-Caucasus District upheld the determination of the Rostov Office of the Federal Antimonopoly Service (FAS Russia) regarding the Savings Bank of Russia for fixing unreasonably high prices of financial services, reported the press-centre of FAS Russia.

In July 2009, Rostov OFAS Russia found that the Savings Bank of Russia violated Clause 7 Part 1 Article 10 of the Federal Law “On Protection of Competition”: the Bank fixed unreasonably high price for the service of managing accounts in Rubles in Rostov-on-Don (in January 2009 the price increased by four times – from 500 to 2000 Rubles). Based on this decision, the antimonopoly body issued a determination to the Savings Bank of Russia to fix the cost of services for managing accounts in Rubles at the level not exceeding considerably the average market costs of this service in the Rostov region.

“The price was increased at the time of a financial crisis, when there was a massive outflow of monetary funds from one credit organizations to those that were given government support, including the Savings Bank of Russia”, commented Deputy Head of Rostov OFAS Russia Yevgeny Molchanov.

Fro violating the antimonopoly law, the Savings Bank of Russia was made administratively liable and fined over 184,000 Rubles. Legitimacy of the fine was confirmed by the Courts of three instances.

Reference:
Clause 7 Part 1 Article 10 of the Federal Law “On Protection of Competition” prohibits actions (omissions) by an economic entity with dominant market position if such actions (omissions) have resulted or can result in preventing, restricting or eliminating competition and (or) infringing the interests of other persons, in particular, fixing unreasonably high or low prices for financial services provided by a financial organization.