OREANDA-NEWS. August 04, 2011. The 16th Arbitration Appeal Court confirmed validity and reasonableness of the decision and determination issued by the Office of the Federal Antimonopoly Service (FAS Russia) in the Republic of Dagestan (Dagestan OFAS Russia) regarding “Rostelecom” OJSC, reported the press-centre of FAS Russia.

The case against “Dagsvyazinform” OJSC (later included in “Rostelecom” OJSC) was initiated upon a complaint of “VympelCom” OJSC that the Republic company was imposing disadvantageous conditions for a contract for providing network services, related and additional communications services when communications equipment was placed in technological premises of “Dagsvyazinform” OJSC to provide connection with inter-city and international communications networks in the Republic of Dagestan. OFAS found that “Dagsvyazinform” OJSC violated Part 1 Article 10 of the Federal Law “On Protection of Competition”.

Investigating the case, the Commission of Dagestan OFAS Russia established that “Dagsvyazinform” OJSC was forcing the provider, whose equipment was positioned on technological sites of “Dagsvyazinform” OJSC, to sign contracts for the services of organising, providing for use and servicing unswitched build-up connections, while effectively “Dagsvyazinform” OJSC was providing different services – assigning premises for use for installing means of communications, that can be provided only on contractual basis, including lease contracts.

According to the OFAS Commission, by forcing “VympelCom” OJSC to conclude a contract for the services that were not provided, “Dagsvyazinform” OJSC abused its market dominance and created a threat to infringe the rights of “VympelCom” OJSC by suspending services for providing access to the networks of “Rostelecom” OJSC and “MTT” OJSC.

Having investigated the case, Dagestan OFAS Russia found that “Dagsvyazinform” OJSC violated Clause 3 Part 1 Article 10 of the Federal Law “On Protection of Competition” and issued a determination to stop abusing market dominance.

“Dagsvyazinform” OJSC filed a lawsuit to the Arbitration Court of the Republic of Dagestan, challenging the decision and determination of Dagestan OFAS Russia. The 16th Arbitration Appeal Court supported the position of “Dagsvyazinform” OJSC.

However, the Federal Arbitration Court of the North Caucasus District revoked the judgments of the Courts of lower Instances referring to incomplete examination of the case materials and forwarded the case for reconsideration to the Arbitration Court of the Republic of Dagestan.

At repeated hearings, the Arbitration Court of the Republic of Dagestan (the judgment of 18th May 2011) and then the 16th Arbitration Appeal Court (the ruling of 26th July 2011) dismissed the claim of “Rostelecom” OJSC (the legal successor of “Dagsvyazinform” OJSC) and confirmed legitimacy of the decision made by the antimonopoly body.

“The Courts of First and Second Instances unreasonably revoked the decision and determination issued by the Antimonopoly Service. Only at repeated hearings the Courts of two instances pronounced legitimacy and reasonableness of our decision and determination, which is especially important and it is matter of principle for us. Such decisions regarding persons who abuse their market dominance and infringe legitimate interests of other market participants are significant for preventing similar violations in the future”, said the Head of Dagestan OFAS Russia, Mr. Kurban Kubasaev.