OREANDA-NEWS. May 27, 2011. The Federal Antimonopoly Service (FAS Russia) found that Nakhabino Town Authority, the Moscow Region (further on referred to as Nakhabino Authority), violated Part 1 Article 15 of the Federal Law “On Protection of Competition”, reported the press-centre of FAS Russia.    

In Nakhabino apartment blocks are managed by “Aquatoria” Ltd. that did not conclude contracts with all owners of premises in apartment blocks.

Under the law of the Russian Federation, local self-government bodies are obligated to organize open tenders to select managing organizations if within a year after making the decision about the method of management of apartment block all owners did not conclude the contracts for managing these apartment blocks.

Nakhabino Authority failed to organize a tender to select a managing organization. A representative of Nakhabino Authority informed the FAS Russia’s Commission that they had not undertaken actions to control whether “Aquatoria” Ltd. had been concluding contracts for managing apartment blocks with each owner of premises in these apartment blocks.

Nakhabino Authority created preferential conditions for “Aquatoria” Ltd. to exercise its activities towards managing the apartment blocks, which restricted competition on the market of apartment blocks management.

“Tenders will not only facilitate creating equal conditions amongst market participants but also improve the quality of services in the housing-and utilities sector”, commented the Head of the FAS Russia’s Department for Control over the Authorities, Mr. Vladimir Mishelovin.

Reference:

Part 1 Article 15 of the Federal Law “On Protection of Competition” prohibits local self-government bodies to exercise actions (omissions) that lead or can lead to prevention, elimination or restriction of competition.