OREANDA-NEWS. February 24, 2011. The Commission of the Federal Antimonopoly Service (FAS Russia) found that “Izhevsk Mechanical Plant” Federal State Unitary Enterprise and “Izhevsk Arsenal” Ltd. violated Part 2 Article 11 of the Federal Law “On Protection of Competition”, reported the press-centre of FAS Russia.

The companies entered into an agreement about the exclusive right for purchasing gas-cylinder pistol МR-654К by “Izhevsk Arsenal” Ltd.

The case was initiated upon a complaint from “Cornet” Ltd. and “T.P. Artur” Ltd. about that “Izhevsk Mechanical Plant” Federal State Unitary Enterprise that refused to conclude contracts for supplying this product.

Investigating the case, FAS Russia established that “Izhevsk Mechanical Plant” Federal State Unitary Enterprise and “Izhevsk Arsenal” Ltd. entered into a contract for supplying sport-and-hunting fire arms, service weapons, airguns, gas-cylinder guns and self-defence weapons as well as spare parts, tools and accessories to them.

On 29th December 2009, “Izhevsk Mechanical Plant” Federal State Unitary Enterprise and “Izhevsk Arsenal” Ltd. signed an additional agreement to the contract. The agreement between the parties prohibits wholesale sale of gas-cylinder pistol МR-654К and its modifications to other legal persons except “Izhevsk Arsenal” Ltd.

Having investigating the case, the FAS Russia’s Commission concluded that actions of “Izhevsk Mechanical Plant” Federal State Unitary Enterprise and “Izhevsk Arsenal” Ltd. could have prevented, restricted or eliminated competition on the market of non-military weapons in the Russian Federation, particularly to unreasonable refusal of “Izhevsk Mechanical Plant” Federal State Unitary Enterprise and “Izhevsk Arsenal” Ltd. to conclude contracts with potential buyers of gas-cylinder pistol МР-654К.

Reference:

1. Part 2 Article 11 of the Federal Law “On Protection of Competition” prohibits agreements between economic entities or concerted actions between economic entities if such actions lead or can lead to restriction of competition.

2. Following the FAS Russia’s Order “Izhevsk Mechanical Plant” Federal State Unitary Enterprise is included in the Register of economic entities with over 35% of a particular market of goods, works or services: the company controls over 35% of the wholesale market of products, design of which is similar to weapons, within the boundaries of the Russian Federation. Gas-cylinder pistol МР-654К and its modifications are the products, design of which is similar to weapons.