OREANDA-NEWS. November 26, 2010. Moscow Arbitration Court dismissed the claim “Rusperforator” CJSC, “Sverdlov Works” Federal Budget-Supported Enterprise and “Promsynthez” OJSC on invalidating the decision and determination issued by the Federal Antimonopoly Service (FAS Russia), reported the press-centre of FAS Russia.

On 21st January 2010, FAS Russia found that “Rusperforator” NPP” CJSC, “Perm Powder Plant” Federal Budget-Supported Enterprise, “Kalinivsky Chemical Works” OJSC, “Promsynthez” OJSC, “Sverdlov Works” Federal Budget-Supported Enterprise, “Bryansk Chemical Plant” Federal State Unitary Enterprise and “Plastics Works” Federal State Unitary Enterprise violated Part 1 and Part 3 Article 11 of the Federal Law “On Protection of Competition”.

The companies simultaneously fixed identical prices for some industrial explosives.

The case was initiated upon a petition of “Sevuralbauxitruda” OJSC (of Severouralsk) – a mining company that extracts aluminum-containing raw materials (bauxites) by an underground method using industrial explosives.

“Perm Powder Plant” Federal Budget-Supported Enterprise, “Kalinivsky Chemical Works” OJSC, “Promsynthez” OJSC, “Sverdlov Works” Federal Budget-Supported Enterprise, “Bryansk Chemical Plant” Federal State Unitary Enterprise and “Plastics Works” Federal State Unitary Enterprise are producers and suppliers of industrial explosives.

“Rusperforator” NPP” CJSC is the agent of the above producers for distribution of industrial explosives.

The FAS Russia’s Commission investigated the case and established that simultaneous fixing of identical prices for industrial explosives was the result of concerted actions of these economic entities. “Rusperforator” NPP” CJSC acted as the coordinator and liaison agent between the producers.

The companies disagreed with the decision of the antimonopoly authority and filed a lawsuit, but the Court supported the position of the Antimonopoly Service.

Reference:

Part 1 Article 11 of the Federal Law “On Protection of Competition” prohibits agreements between economic entities or concerted actions of economic entities on the market, if such agreements or concerted actions lead or can lead to fixing or maintaining prices (tariffs), discounts, mark-ups and surcharges.

Part 3 Article 11 of the Federal Law “On Protection of Competition” prohibits coordination of economic activities of market participants if such coordination lead or can lead to fixing or maintaining prices (tariffs), discounts, mark-ups and surcharges.