OREANDA-NEWS. March 21, 2011. “IDGG of Centre” OJSC (in the person of its branch “Kurskenergo”) paid nine million Rubles to the federal budget as a fine for abusing market, reported the press-centre of FAS Russia.

On 8th February, Arbitration Courts of First and Appeal Instances confirmed legitimacy of the actions of the Office of the Federal Antimonopoly Service in the Kursk regions (Kursk OFAS Russia) towards making “IDGG of Centre” OJSC (in the person of its branch “Kurskenergo”) administratively liable under Article 14.31 of the Code of the Russian Federation on Administrative Violations.

Earlier the Commission of Kursk OFAS Russia found that “IDGG of Centre” OJSC (in the person of its branch “Kurskenergo”) violated Clause 4 Part 1 Article 10 of the Federal Law “On Protection of Competition”. The company abused its market dominance by infringing the interests of “Oboyanskie KTS” Municipal Unitary Enterprise and “Kurskaya Energosbytovaya Kompania” OJSC. On 18th February 2009, “IDGG of Centre” OJSC (in the person of its branch “Kurskenergo”) restricted consumption of electric power for the premises owned “Oboyanskie KTS”.

On 14th July 2009, the Commission of Kursk OFAS Russia issued a determination making “IDGG of Centre” OJSC (in the person of its branch “Kurskenergo”) administratively liable under Article 14.31 of the Code on Administrative Violations and imposed a RUB 29-million fine.

“IDGG of Centre” OJSC filed a lawsuit challenging the decision and determination issued by Kursk OFAS Russia. Arbitration Courts of three instances confirmed validity of the conclusions made by the antimonopoly body to prevent abusing market dominance of “IDGG of Centre” OJSC (in the person of its branch “Kurskenergo”) and administrative sanctions, but decreased the fine to nine million Rubles.

“Turnover fines for abusing market dominance are important sanctions that stimulate dominant economic entities to comply with the antimonopoly law. In this case the sum of the fine collected to the federal budget should be an effective preventing measure against violations of the antimonopoly law by monopolists”, commented the Head of Kursk OFAS Russia Yuri Komov.

Reference:

Article 14.31 of the Code of the Russian Federation on Administrative Violations imposes administrative liability for abusing market dominance.