OREANDA-NEWS. March 05, 2011. The Federal Antimonopoly Service (FAS Russia) found that “Alcoa Metallurg Rus” CJSC violated Clause 1 Part 1 Article 10 of the Federal Law “On Protection of Competition”, reported the press-centre of FAS Russia.

Earlier FAS Russia received a petition of “Oboronpromcomplex” State Joint-Stock Company” OJSC that “Alcoa Metallurg Rus” CJSC had increased prices for its aluminium products.

In course of the antimonopoly investigation, the FAS Russia’s Commission found that the group of persons including “Alcoa Metallurg Rus” CJSC and “Alcoa SMZ” CJSC had the dominant position on the market of sheets made from AMG6M aluminum alloy, with the market share over 80%. “Alcoa Metallurg Rus” CJSC is the monopolist producer of some types of sheets. “Oboronpromcomplex” State Joint-Stock Company” OJSC supplies the sheets made from AMG6M aluminum alloy as part of the government defence order for the needs of aviation and rocket industries and for production of special military equipment.

The FAS Russia’s Commission also established that in 2009 “Alcoa Metallurg Rus” CJSC had considerably increased its prices for aluminum products. Prices for the sheets made from AMG6M aluminum alloy soared by 119%, while the prices for comparable products went up only by 53%.

“Alcoa Metallurg Rus” CJSC abused its market dominance as there were no economic, technological or other reasons for the twofold increase of prices for the sheets made from AMG6M aluminum alloy.

“In the period of crises the prices for non-ferrous metals that form the main raw materials for production as well as the prices for competitive products produced by the companies from the “Alcoa” group of persons dropped down, while the prices for some rolled products for the needs of the defence complex increased twofold. Such abuses resulted in making military equipment considerably more expensive and, as a consequence, increasing spendings from the federal budget and constraining technical modernization of the Armed Forces”, commented the Head of the FAS Russia’s Department for Control over Industry and Defence Complex, Maksim Ovchinnikov.

Reference:

Part 1 Article 10 of the Federal Law “On Protection of Competition” prohibits actions (omissions) of an economic entity with dominant position that have resulted or can result in preventing, restricting, eliminating competition and (or) infringing the interests of other persons, particularly, fixing monopolistically high prices.