OREANDA-NEWS. March 22, 2012. Arbitration Court of the Republic of Tatarstan confirmed legitimacy of the fine imposed by the Office of the Federal Antimonopoly Service in the Republic of Tatarstan (Tatarstan OFAS Russia) upon “Santechservice” Ltd., reported the press-centre of FAS Russia.

Earlier Tatarstan OFAS Russia found that “Inzhenernie Seti” Ltd., “Santechservice” Ltd., and “Aznakaevo Mobile Mechanical Division” Ltd. violated Clause 2 Part 1 Article 11 of the Federal Law “On Protection of Competition”. The companies exercised concerted actions in course of taking part in an open auction for routine maintenance, urgent, emergency repair of water supply, sewage and heat supply systems, technical servicing and emergency maintenance of on-site utilities and sanitary appliance in Aznakaevo in 2010.

The Executive Committee of Aznakaevo Municipal District (the Executive Committee) placed a notice about the open auction. According to the notice, the auction comprised seven lots. Three organizations took part in the auction: “Inzhenernie Seti” Ltd., “Aznakaevo Mobile Mechanical Division” Ltd. and “Santechservice” Ltd. The initial (maximum) contact price of No.1 lot was 3.8 million Rubles. The winner was pronounced “Aznakaevo Mobile Mechanical Division” Ltd. with the contract price 3.6 million Rubles. The initial (maximum) contact price for Nos. 2, 3, 4, 5, 6, 7 lots was 1.2 million Rubles. The winner was “Inzhenernie Seti” Ltd., with the contract price 1.2 million Rubles. “Santechservice” Ltd. did not file price bids at the auction. As established by the Commission of Tatarstan OFAS Russia, it happened because after the auction “Santechservice” Ltd. concluded a contract agreement with one of the auction winners – “Aznakaevo Mobile Mechanical Division” Ltd. Under the contract conditions, “Santechservice” Ltd., in its capacity as a sub-contractor, undertook obligations to carry out a part of the works specified in the municipal contract, which was concluded upon the auction outcome between the Executive Committee and “Aznakaevo Mobile Mechanical Division” Ltd. The price of the contract agreement was 1.7 million Rubles.

“The actions of economic entities did not have signs of competition because the minimum percentage of reduction of the original lot price is not characteristic for competitive procurement. It also confirmed the fact of concerted actions that ultimately resulted in insufficient saving of funds”, pointed out Deputy Head of Tatarstan OFAS Russia, Ivan Scherbakov.

The antimonopoly body fined “Aznakaevo Mobile Mechanical Division” Ltd. and “Santechservice” Ltd. 100,000 Rubles. “Inzhenernie Seti” Ltd. took advantage of the so-called “leniency programme”, reporting its participation in concerted actions.

“Aznakaevo Mobile Mechanical Division” Ltd. paid the administrative fine.

“Santechservice” Ltd. filed a lawsuit challenging the determination. However, the Court of First Instance confirmed legitimacy of the determination issued by Tatarstan OFAS Russia.

Reference:

Under the Notes to Article 14.32 of the Code of the Russian Federation on Administrative Violations, a person (a group of persons, defined according to the antimonopoly law of the Russian Federation) who voluntarily reports to the federal antimonopoly body, its regional body that it concluded an agreement prohibited by the antimonopoly law of the Russian Federation or exercised concerted actions prohibited by the antimonopoly law of the Russian Federation, shall be relieved from the administrative liability for committing administrative violations specified in Parts 1 and 3 of Article 14.32, subject to the following conditions as a whole:

- By the time of filing a petition by a person, an antimonopoly body did not have relevant information and documents regarding the administrative violation;

- A person refused to take part or to further take part in an agreement or exercise or further exercise concerted actions;

- Presented information and documents suffice to establish a case of an administrative violation.

A person that was the first to meet all conditions specified in the Notes shall be relieved from administrative liability.