Court Supported FAS Position on Case on Aluminum Cans
OREANDA-NEWS. November 16, 2011. The Presidium the Federal Arbitration Court of the Russian Federation confirmed legitimacy of the decision and determination of the Federal Antimonopoly Service (FAS Russia) regarding “Rexam Beverage Can Naro-Fominsk” Ltd., “Rexam Beverage Can Vsevolozhsk” Ltd. and “Rexam Beverage Can Dmitrov” Ltd. (companies of the group of persons of “Rexam” Ltd.), reported the press-centre of FAS Russia.
On 24th February 2010, FAS Russia found that companies of the group of persons of “Rexam” Ltd. violated Clauses 3 and 8 Part 1 Article 10 of the Federal Law “On Protection of Competition” and issued a determination to ensure maximum transparency of sales policy.
The group of persons of “Rexam” Ltd. created discriminatory conditions for supplies of aluminum cans for wholesale consumers, and prohibited “SAN InBev” OJSC self-delivery of the goods that was economically disadvantageous for the company.
The group of persons of “Rexam” Ltd. disagreed with FAS conclusions and challenged them at Court.
The Courts of the First and Appeal Instances concluded that the dominant position of the “Rexam” group of persons was not proved. Also the Courts found that it was not possible to assess disagreements between the parties regarding contract conditions cannot be interpreted as imposing disadvantageous conditions prohibited by Clause 3 Part 1 Article 10 of the Federal Law “On Protection of Competition”.
However, the Cassation Court agreed with FAS that the “Rexam” group of persons and reversed the judgment of the Court of First Instance, the ruling of the Appeal Court, refusing to invalidate FAS decision and determination.
Representatives of the group of persons of “Rexam” Ltd. disagreed with the findings of the Federal Arbitration Court of the Moscow District and filed a claim to the Supreme Arbitration Court of the Russian Federation to reconsider the ruling of the Cassation Court.
In its turn, the Presidium the Federal Arbitration Court dismissed the claim of “Rexam Beverage Can Naro-Fominsk” Ltd., “Rexam Beverage Can Vsevolozhsk” Ltd. and “Rexam Beverage Can Dmitrov” Ltd. and pronounced legitimacy of the conclusions of FAS Russia that the group of persons of “Rexam” Ltd. abused its dominant position.
“The decision of the Presidium of the Supreme Arbitration Court regarding “Rexam” is a precedent because it unilaterally confirms the rightness of the antimonopoly body in terms of defining the market boundaries as well as exposing discriminatory conditions for some consumers”, said Deputy Head of FAS Andrey Tsyganov.
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