OREANDA-NEWS. April 29, 2011. The Federal Antimonopoly Service (FAS Russia) found that “Spetstechnika – Gruppa GAZ” Ltd. (“SGG” Ltd.) violated Part 3 Article 11 of the Federal Law “On Protection of Competition” (unlawful coordination of economic activities), reported the press-centre of FAS Russia.

The FAS Russia’s Commission established that “SGG” Ltd. coordinated dealers’ behaviour in course of competitive bidding, particularly for supply of equipment for the state needs. The company would decide which dealer was “authorised” to take part in competitive bidding and sent letters to inform the dealers. If the winner became a bidder that was not a dealer of “SGG” Ltd., the company would refuse to supply equipment to the winner under different excuses, and as a result of such actions the government contracts could not be concluded.

Investigating the case, FAS Russia found violations of Clauses 1 and 2 Part 1.2 Article 11 of the Federal Law “On Protection of Competition” (prohibited “vertical” agreements). “SGG” Ltd. and its dealers concluded agreements that led to fixing reselling prices. The company also prohibited its dealers to enter into similar dealer agreements with other manufacturers or buy their products.

FAS Russia drafted a determination that “SGG” Ltd. must eliminate the antimonopoly violations. The company will be held administratively liable under Article 14.32 of the Code of the Russian Federation on Administrative Violations.

Reference:

Under Article 14.32 of the Code of the Russian Federation on Administrative Violations,if an economic entity enters into a competition-restricting agreement that is prohibited by the antimonopoly law of the Russian Federation or an economic entity exercises competition-restricting concerted actions prohibited by the antimonopoly law of the Russian Federation, it is punishable by an administrative fine upon officials from 17,000 to 20,000 Rubles or disqualification for the period up to three years, upon legal entities – form one hundredths to fifteen hundredths of the income of the violator from selling goods (works, services) on the market where the violation was committed.