OREANDA-NEWS. December 30, 2010. The Commission of the Office of the Federal Antimonopoly Service in the Arkhangelsk region (Arkhangelsk OFAS Russia) finalized the case initiated against “Kotlas Poultry Plant” OJSC and “Arkhselprom” ASK” Ltd. upon the signs of violating the Federal Law “On Protection of Competition”.

Arkhangelsk OFAS Russia established that on 27 - 30 August 2010 “Kotlas Poultry Plant” OJSC and “Arkhselprom” ASK” Ltd. increased ex-works prices for the 1st grade chicken eggs practically for the same value – 8.22 Rubles per ten eggs and 7.8 Rubles per ten eggs. The antimonopoly body thought that such simultaneous increase of prices was a result concerted actions between the producers and on 9th September the case was opened. Article 11 of the Federal law “On Protection of Competition” prohibits competition-restricting agreements or concerted actions between economic entities, particularly aimed at maintaining and (or) fixing prices.

Investigating the case, OFAS discovered that in the analyzed period there had been no external economic factors, which could have led to a one-time increase of prices by chicken egg producers. The poultry plants suspected in participation in the price cartel attempted to give various versions and explanations for the incident, all of which were examined and subsequently rejected by the experts of Arkhangelsk OFAS Russia. Thus, OFAS arrived to the conclusion that the increased prices had been the result of concerted actions of the producers trying to fix excessive prices.

The Commission of Arkhangelsk OFAS Russia found that actions of “Kotlas Poultry Plant” OJSC and “Arkhselprom” ASK” Ltd. breached Clause 1 Part 1 Article 11 of the Federal Law “On Protection of Competition” and issued a determination to stop concerted actions. Now the case file is transferred to the responsible officer, who will make a decision on initiating administrative proceedings.

“This is the indicative case for the Arkhangelsk region. For the first time in the modern history of Pomorie / the White Sea region/ we have discovered a price collusion of producers of foods products. We will continue such work in the future. I’d like to remind of my warning issued in August 2010: information about participation in a price cartel constitutes the grounds for leniency. Therefore I advise the violators not to await the fate of the poultry plants exposed by our OFAS”, stated Constantine Alyoshin, the Head of Arkhangelsk OFAS Russia.