Court: Antimonopoly Service Reasonably Punished KSK
OREANDA-NEWS. May 14, 2012. The Courts of three instances supported the decision of the antimonopoly body of the Kostroma region regarding “Kostroma Sales Company” OJSC (“KSK” OJSC). The company abused its market dominance on the market of energy supply. The company restricted energy supply to “Voronyo” Housing Services and Utilities” Municipal Unitary Enterprise by switching off water supply intake in Stolbovo village, reported the press-centre of FAS Region.
On 2nd May 2012, the Federal Arbitration Court of the Volga-Vyatka Federal District confirmed legitimacy of the decision made by the Office of the Federal Antimonopoly Service in the Kostroma Region (Kostroma OFAS Region) regarding “KSK” OJSC.
Earlier the Courts of two instances already pronounced reasonableness of the decision made by the antimonopoly body. On 7th November 2011 the Kostroma Regional Arbitration Court and on 20th January 2012 the Second Arbitration Appeal Court supported the conclusions of Kostroma OFAS Region regarding “KSK” OJSC.
In 2010 Kostroma OFAS Region received materials from the Prosecutor’s Office of Sudislavsky District, the Kostroma Region, which indicated signs of violating the antimonopoly law in the actions of “KSK” OJSC. According to the documents forwarded to OFAS, the company terminated water supply to the residents of apartment blocks in Stolbovo village due to an outstanding debt of “Voronyo” Housing Services and Utilities” Municipal Unitary Enterprise.
Having investigated the case, Kostroma OFAS Region found that “KSK” OJSC violated the antimonopoly law (Clause 4 Part 1 Article 10 of the Federal Law “ON Protection of Competition”).
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