OREANDA-NEWS. September 19, 2011. The 18th Arbitration Appeal Court upheld the decision of the Office of the Federal Antimonopoly Service in the Chelyabinsk Region (Chelyabinsk OFAS Russia) found that “Elevatorzernoproduct” Ltd. and “Buranny” Elevator” OJSC were engaged in concerted actions, reported the press-centre of FAS Russia.

The Commission of Chelyabinsk OFAS Russia established that in 2009 companies fixed the same prices in a concerted manner for grain acceptance, drying, processing, storage and shipment by motor and railway transport. A year later “Elevatorzernoproduct” Ltd. and “Buranny” Elevator” OJSC again fixed and maintained the same prices for their services.

In course of an investigation, the antimonopoly body discovered that the companies have different taxation systems. The price with VAT for the services of “Elevatorzernoproduct” Ltd. is equal to the price without VAT for the similar services of “Buranny” Elevator” OJSC. The costs structure and size and net profit margins of the two companies are considerably different.

On 11th October 2010, Chelyabinsk OFAS Russia found that “Elevatorzernoproduct” Ltd. and “Buranny” Elevator” OJSC violated Clause 1 Part 1 Article 11 of the Federal Law “On Protection of Competition” and issued a determination to stop competition-restricting concerted actions.

The companies filed a lawsuit challenging the decision of Chelyabinsk OFAS Russia.

Chelyabinsk Regional Arbitration Court and the 18th Arbitration Appeal Court pronounced legitimacy and reasonableness of the conclusions made by the antimonopoly bodies.

“Through long, systematic and simultaneous (with 1-2 weeks difference) actions “Elevatorzernoproduct” Ltd. and “Buranny” Elevator” OJSC pursued the goal of gaining additional profit. Exercising concerted actions, the companies obtained possibility to influence general conditions for providing services on the elevator market, which resulted in restricting competition”, commented the Head of Chelyabinsk OFAS Russia, Ms. Anna Kozlova.

Reference:

Clause 1 Part 1 Article 11 of the Federal Law “On Protection of Competition” prohibits concerted actions between economic entities on the market if such concerted actions lead or can lead to fixing (maintaining) prices.