OREANDA-NEWS.  June 27, 2012. The Office of the Federal Antimonopoly Service in the Ulyanovsk Region (Ulyanovsk OFAS Russia) was informed that “Ankar” Milling Company” Ltd. paid a fine in the size over 2.8 million Rubles, reported the press-centre of FAS Russia.

The antimonopoly body fined the company for fixing and maintaining flour prices jointly with “Dimitrovgradkrupozavod” OJSC, “Melservice” Ltd. and an individual entrepreneur (in breach of Clause 1 Part 1 Article 11 of the Federal Law “On Protection of Competition”). On 5 – 19th July 2010, the milling companies in the Ulyanovsk region considerably increased prices (from 22.2% to 59.1%) for wheat flour. The selling prices for wheat flour started growing before purchasing prices for grain were increased.

“Ankar” Milling Company” Ltd., “Dimitrovgradkrupozavod” OJSC and “Melservice” Ltd. filed lawsuits challenging the determination of the antimonopoly body. Having considered the case materials, Ulaynovsk Regional Arbitration upheld the decision and determination of Ulyanovsk OFAS Russia. The 11th Arbitration Appeal Court in Samara reversed the judgment of the Court of First Instance. The Cassation Court pronounced legitimacy of decision made by Ulyanovsk OFAS Russia.

As “Ankar” Milling Company” Ltd. failed to pay the fine within the designated period, Ulyanovsk OFAS Russia initiated a case under Part 1 Article 20.25 of the Code of the Russian Federation on Administrative Violations. Dimitrovgrad Justice’s Court fined the company 5.7 million Rubles – twice as much as the fine the company failed to pay.

“The fist large fine imposed by OFAS for taking part in a cartel on the food market is paid. An attempt of the companies to take advantage of adverse climatic conditions resulted in turnover fines. Hopefully, this situation will be something to think about for those who attempted to breach the law”, commented the Head of Ulyanovsk OFAS Russia, Gennady Spirchagov.

Reference:

From August 2010 to 31st December 2011 regional FAS offices initiated over 1080 cases for violating the antimonopoly law and other laws of the Russian Federation, including 159 cases on economically unjustified refusals or contract evasions, concerted actions of economic entities and price increases.

Violations were exposed on the markets of flour, bread, butter, sunflower oil, milk, eggs, peeled buckwheat, salt, sugar, millet, services of grain elevators, as well as violations committed by the authorities.

The most cases upon signs of violating the antimonopoly law were initiated in Bashkortostan OFAS Russia (over 18 cases), Khanty-Mansiisk OFAS (over 15 cases), Altai Krai, Amur, Kemerovo, Kostroma, Kurgan, Novgorod, Penza, Rostov, St Petersburg, Tver, Udmurtia, Chelyabinsk, Chuvashia OFAS - 7 and more cases.

As of 10th January 2012, the antimonopoly bodies imposed turnover and other types of fines under the Code of the Russian Federation on Administrative Violations for the total amount - 127 million Rubles.