OREANDA-NEWS. September 29, 2011. The Federal Arbitration Court of Povolzhie District confirmed the fact of concerted actions between “Edelweiss M”Milk Plant” CJSC, “Zelenodolsk Milk Integrated Works” OJSC, “Chistopolye Milk Integrated Works” OJSC, “Alabuga Sote” OJSC and “VAMN-Tatarstan” OJAC aimed at fixing and maintaining low purchasing prices for raw milk in 2008 and 2009 spring and summer seasons, reported the press-centre of FAS Russia.

In February 2010, Tatarstan OFAS Russia fined “Edelweiss M”Milk Plant” CJSC, “Zelenodolsk Milk Integrated Works” OJSC, “Chistopolye Milk Integrated Works” OJSC, “Alabuga Sote” OJSC and “VAMN-Tatarstan” OJAC for violating Article 11 of the Federal Law “On Protection of Competition”. Milk plants were engaged in concerted actions for developing joint pricing policy regarding purchasing prices for raw milk, as a result of which the companies fixed and maintained low purchasing prices for raw milk in 2008 and 2009 spring and summer seasons. Each violator was fined 100,000 RUB.

The companies fined lawsuits challenging the decision of Tatarstan OFAS Russia.

However, the Arbitration Court of the Republic of Tatarstan, the 11th Arbitration Appeal Court, and the Federal Arbitration Court of Povolzhie District pronounced legitimacy of the conclusions made by the antimonopoly body.

“Thus, the Courts of three instances confirmed the fact of concerted actions aimed at restricted competition on the market of raw milk that resulted in unreasonably reduction of purchasing prices for milk to a level that not only generates profit for milk producers but not even cover production costs. It is a violation of the antimonopoly law”, said Deputy Head of Tatarstan OFAS Russia, Mr. Ivan Scherbakov.