OREANDA-NEWS. April 13, 2012. The Federal Antimonopoly Service (FAS Russia) found that “R-PHARM” CJSC, “MANAS MED” Ltd., “KORAL MED” CJSC, “Advance Trading” Ltd., “Shreya Corporational” CJSC, “Pharmasynthez” OJSC, “Rusresource” Ltd., “Medical Leasing-Consulting” Ltd., “Virend International” Ltd., “DiMedika” Ltd. and “APTEKA-HOLDNG” Ltd. artificially maintained prices at an auction (violating Clause 2 Part 1 Article 11 of the Federal Law “On Protection of Competition”), reported the press-centre of FAS Russia.

The pharmaceutical companies took part in an open auction for the right to conclude state contracts for supplying anti-tuberculosis medicines under “Tuberculosis” Sub-Programme of the Federal Target Programme “Preventing and Combating Socially Significant Diseases (2007-2011)”.

Some companies allowed to take part in the auction, were present in course of the auction but did not file the price bids, or after the companies registered for the auction they failed to attend the auction. The companies that took part in the auction took turns refusing to compete and did not file bids. Passive conduct of the auction bidders for a certain lot was caused by passive conduct of bidders for another lot. As a result, government contacts were concluded either at the maximum price with the only bidder, or a bidder who filed the only price bid was pronounced the winner. It resulted in maintaining prices in course of the auction due to restricting competition.

“The case was suspended in June 2011 because the Investigation Department of the Russian Ministry of Interior investigated a criminal case initiated upon a fact of restricting competition at the auctions organized by the Ministry of Health Care and Social Development for supplying medicines for the state needs, which brought large-scale damages to the state, and initiated upon receiving materials required by FAS to pass a decision”, said the Head of FAS Cartel Department, Alexander Kinyov.

Having investigated the case circumstances, as well as arguments and objections put forward by the parties to the case, FAS concluded that such conduct of the auction bidders had been a consequence of concluding and implementing an agreement that restricting competition at auctions. In its decision, FAS Commission ascertained the signs of violation under Article 178 of the Criminal Code of the Russian Federation, and the case file on the antimonopoly violation will be forwarded to the Investigation Department of the Russian Ministry of Interior.