OREANDA-NEWS. November 11, 2011. Moscow Arbitration Court dismissed the claim of “Mozyrsalt” OJSC to invalidate a determination of the Federal Antimonopoly Service (FAS Russia) on imposing an administrative fine upon the company – 100,000 Rubles. Therefore, the Court once again confirmed legitimacy of FAS position on the case regarding collusion on the market of table salt, reported the press-centre of FAS Russia.   

On 20th January 2011, the FAS Russia Commission concluded that “Mozyrsalt” OJSC, “BPK” Ltd., “TDS” CJSC and “Evrotrust Expo” Ltd. violated Clause 3 Part 1 Article 11 of the Federal Law “On Protection of Competition”. The companies reached agreement about selling slat produced by Mozyrsalt” OJSC in Moscow and the Moscow region that are unacceptable in terms of the antimonopoly law.

Earlier Arbitration Courts of two instances supported this position of the FAS Russia Commission: a decision on recognizing that the companies violated the Federal Law “On Protection of Competition” came into force.

However, a respondent tot eh case - “Mozyrsalt” OJSC – attempted to challenge legitimacy of the administrative sanction for the violation committed. Nevertheless, the Court of First Instance also supported FAS position.

Based on its decision that the companies violated the Federal Law “On Protection of Competition”, FAS imposed administrative fines: “BPK” Ltd. – 12.3 million Rubles, “TDS” CJSC – 340,000 Rubles, “Evrotrust Expo” Ltd. – 100,000 Rubles and “Mozyrsalt” OJSC – 100,000 Rubles.

“Administrative sanctions for violating the antimonopoly law also have a preventive function that can eliminate repeated violations by economic entities”, said the Head of FAS Department for Control over Chemical Industry and Agroindustrial Complex, Teimuraz Kharitonashvili.

Reference:

Clause 3 Part 1 Article 11 of the Federal Law “On Protection of Competition” prohibits agreements between economic entities or concerted actions of economic entities on the market if such agreements or concerted actions lead or can lead to dividing the market on a geographic principle, volume of sales or purchasing, the range of goods, or categories of sellers or buyers (customers).

Under Part 1 Article 14.32 of the Code on Administrative Violations, when an economic entity concludes and participates an agreement prohibited by the antimonopoly law of the Russian Federation, it is punishable by an administrative fine –– for physical persons - 20,000 – 50,000 Rub, or disqualification for a period of up to three years, for legal entities – from on hundredths to fifteen hundredths of the income of the violator from selling goods (works, services) on the market, where the administrative violation was committed, but no less than 100,000 Rubles, and if the income of the violator from selling goods (works, services) on the market, where the administrative violation was committed, exceeds 75 % of the overall income of the violator from selling all goods (works, services) – from three thousandths to three hundredths of the income of the violator from selling goods (works, services) on the market, where the administrative violation was committed, but no less than 100,000 Rubles.