OREANDA-NEWS. February 22, 2011. The Federal Antimonopoly Service (FAS Russia) found that “Caustic” Ltd., “Promchim” Ltd., “Orion” Ltd., “Biakr” Ltd., “CHIMPEK” AK” CJSC and “Logosib” Ltd. violated Clauses 1 and 2 Part 1.2 Article 11 of the Federal Law “On Protection of Competition”. FAS did not issue a determination due to voluntary elimination of the violation, reported the press-centre of FAS Russia.

On 23rd August 2010, FAS Russia initiated a case against “Caustic” Ltd. (of Volgograd) and its dealers upon the signs of violating Clauses 1 and 2 Andrey Tsyganov spoke at the OECD Global Competition Forum.

“Caustic” Ltd., a producer of caustic soda, and its buyers violated the law by entering into dealer agreements that contained requirements, which could resulted in fixing reselling price for caustic soda. The agreements also prohibited dealers to enter into similar dealer agreements with other producers or buy similar products from them.

Part 1.2 Article 11 of the Federal Law “On Protection of Competition” prohibits vertical agreements between economic entities.

FAS Russia established that the dealer agreements between “Caustic” Ltd. and “Promchim” Ltd., “Orion” Ltd., “Biakr” Ltd., “CHIMPEK” AK” CJSC, “Logosib” Ltd. are “vertical” and could have resulted in and in fixing reselling price for solid caustic soda. The agreements also required the dealers not to sell solid caustic soda produced by competitors.

“Caustic” Ltd. admitted the fact of concluding dealer agreements with its buyers but pointed out that the parties did not exercise them. Later “Caustic” Ltd. presented evidence to prove that the dealer agreements had been terminated.

FAS will initiate an administrative case against the violators.

“In 2009 the “second antimonopoly package” clearly defined, which types of “vertical” agreements are prohibited. Today FAS does not have many such cases and we do not wish to increase the number. Out main target are cartels – “horizontal” agreements”, points out Alexander Kinyov, the Head of the FAS Russia’s Cartel Department. “As for the case of “Caustic” Ltd. and its dealers, this is a classic case on “vertical” agreements and it is interesting, particularly, for methodological approach”.