OREANDA-NEWS. February 14, 2011. The 9th Arbitration Appeal Court upheld the judgment of the Moscow Arbitration Court that the Federal Tariff Service (FTS Russia) unlawfully failed to execute the determination of the Commission of the Federal Antimonopoly Service (FAS Russia) on the case on antimonopoly violations, reported the press-centre of FAS Russia.

On 2nd April 2009, the FAS Russia’s Commission found that FTS Russia violated Clauses 2 and 5 Part 1 Article 15 of the Federal Law “On Protection of Competition”.

FTS Russia violated the law by issuing orders that restricted credit organisations (banks issuing customs cards) in their choice of economic entities with who they could enter into a contract for issuing customs cards, and that prevented activities of “Tamozhennaya Karta” Ltd. as a coordinator of a customs cards emission.

To stop the antimonopoly violations, the FAS Russia’s Commission issued a determination to FTS Russia to abolish and change the acts that were contrary to the antimonopoly law, and exercise actions towards protection of competition.

In particular, Clause 1.2 of the determination established an obligation of FTS Russia to introduce changes to No.575 Order of the State Customs Committee “On Improving the System of Customs Duties Payments” of 10th August 2001 that create competitive conditions for coordinator’s activities.

Under Clause 2.2 of the determination issued by the antimonopoly body, FTS Russia was obligated to submit an amended order for approval by FAS Russia.

On 24th March 2010, the Cassation Court confirmed validity of the decision and determination issued by the FAS Russia’s Commission. However, when the ruling of the Cassation Court came into force, Clauses 1.2 and 2.2 of the FAS Russia’s determination was not executed.

FAS Russia filed a lawsuit to Moscow Arbitration Court asking to recognise that the FTS Russia’s omissions, which resulted in failure to execute Clauses 1.2 and 2.2 of the FAS Russia’s determination, were unlawful.

On 6th October 2010, Moscow Arbitration Court allowed the claim of FAS Russia.

FTS Russia challenged the ruling of the Arbitration Court of the First Instance at the 9th Arbitration Appeal Court, which, however, dismissed the claim of FTS Russia.