OREANDA-NEWS. February 28, 2012. The 9th Arbitration Appeal Court in Moscow dismissed the claim of “KRK” Commercial Bank” OJSC to invalidate the judgment of Moscow Arbitration Court of 28th November 2011 and issue a new judicial act that would invalidate a FAS determination to fine the bank 100,000 Rubles for participating in a price cartel on the market of comprehensive and collusion car insurance, reported the press-centre of FAS Russia.

The bank concluded and took part in anticompetitive agreements, that have led or could have led to maintaining and supporting prices (tariffs) for insuring vehicles of physical persons – the clients of “KRK” CJSC and “KRK” Commercial Bank” OJSC. The bank exercised anticompetitive actions by concluding and participating in agreements that have led or could have led to imposing disadvantageous insurance conditions upon the clients of “KRK” CJSC and “KRK” Commercial Bank” OJSC: establishing a fixed insurance tariff at 9.99%.

In 2010 FAS exposed price collusion on the market of vehicle insurance between the KRK group of persons, comprising “Retail Crediting Company” CJSC, “KRK-Strakhovanie” Ltd. “KRK” Commercial Bank” OJSC, as well as six insurance companies: “AlphaStrakhovanie” OJSC, “MSK” Insurance Group” OJSC, “Rosgosstrakh” Ltd., “Admiral” Insurance Group” Ltd., “Renaissance Insurance Group” Ltd. and “Russkaya” Insurance Company” OJSC.

Having investigated the case on antimonopoly violation, FAS found that participants of the collusion violated Part 1 Article 11 of the Federal Law “On Protection of Competition”.

Upon the fact of recognizing the antimonopoly violation, FAS initiated administrative cases against the KRK group of persons and insurance companies, and as a result participants of the price collusion were imposed turnover fines for the total amount over 115 million Rubles.

Reference:

1. Article 14.32. Concluding a competition-restricting agreement, exercising competition-restricting concerted actions, coordinating economic activities

1. Concluding an agreement, prohibited by the antimonopoly law of the Russian Federation, by an economic entity, as well as taking part in it, or exercising concerted actions, prohibited by the antimonopoly law of the Russian Federation, by an economic entity, are punishable by an administrative fine upon officials – from 20,000 to 50,000 Rubles, or disqualification for the period of up to three years; for legal entities – from one 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 total 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.