OREANDA-NEWS. August 10, 2011. The Federal Antimonopoly Service (FAS Russia) found that “Popov Radio Manufacturing Plant” Omsk Production Association”OJSC violated Part 1 Article 10 of the Federal Law “On Protection of Competition”, reported the press-centre of FAS Russia.

The Plant violated the law by fixing and maintaining monopolistically high prices for the special-purpose product manufactured by the Plant.

The case was initiated upon a petition of “Elektroapparat” OJSC regarding “Popov Radio Manufacturing Plant” Omsk Production Association”OJSC. The petitioner was buying the Plant products to complete a government defence contract.

Investigating the case, the FAS Commission revealed that “Popov Radio Manufacturing Plant” OJSC supplied the same product to another customer at considerably lower prices. In 18 months the price for the product increased nearly 2.5 times.

In spite of repeated requests, “Popov Radio Manufacturing Plant” OJSC failed to provide justification for the price increase and prevented inspections on several occasions.

Upon completing the investigation, FAS concluded that increase of prices for the product of “Popov Radio Manufacturing Plant” OJSC did not correspond with the conditions on the market during the analysed period and the contract price of the product was set unreasonably high.

“The violator will be issued a determination to set economically justified prices for its products”, said Deputy Head of the FAS Department for Control over Industry and Defence Complex, Andrey Greshnev.

Reference:

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

2) Such violations are punishable under Article 14.31 of the Code of the Russian Federation on Administrative Violations – an administrative fine upon legal entities up to 15% of the income of the violator from selling goods (works, services) on the market where the administrative violation was committed.