OREANDA-NEWS. November 16, 2010. The Office of the Federal Antimonopoly Service in the Republic of Dagestan (OFAS Russia) fined “Dagestan Airlines” OJSC four million Rubles for abusing market dominance on the market for providing airports services under Article 14.31 of the Code of the Russian Federation on Administrative Violations, reported the press-centre of FAS Russia.

Dagestan OFAS Russia made a decision that “Dagestan Airlines” OJSC violated Part 1 Article 10 of the Federal Law “On Protection of Competition” and imposed a “turnover” fine upon the airlines.

On 9th July 2010 Dagestan OFAS Russia received a complaint from “Aeroservice” Airline” Ltd. about actions of “Dagestan Airlines” OJSC, which unreasonably refused to enter into contracts with “Aeroservice” Airline” Ltd. and prevented market entry of the company by not allowing its members of staff to work in Makhachkala airport.

“Dagestan Airlines” OJSC filed a lawsuit to the Arbitration Court of the Republic of Dagestan challenging the decision and determination of Dagestan OFAS Russia.

Having examined the case materials, the Court dismissed the claim.

The 16th Arbitration Appeal Court upheld the judgment of the Arbitration Court of the Republic of Dagestan.

“Creating discriminatory conditions and infringing the interests of other persons deserves tough punishment to prevent committing similar violations by the same company as well as by other market participants”, says Deputy Head of - Dagestan OFAS Russia, Ms. Jamilya Khallaeva.

Reference:

In the first six months of 2010 FAS Russia and its regional offices initiated 1289 cases (Article 10 of No.135-FZ Federal Law “On Protection of Competition” of 26th July 2006. As of today, FAS has issued 678 determinations based on their inspections’ findings to stop the antimonopoly violations.

In the first six months of 2010 the antimonopoly authority initiated 705 administrative cases for abusing market dominance under Article 14.31 of the Code of the Russian Federation on Administrative Violations. The total size of the fines reached over 1 million Rubles.