Court Confirmed that Uralvneshtsentr Abused Market Dominance
OREANDA-NEWS. August 01, 2012. The Appeal Court upheld the judgment of the Court of First Instance, which pronounced legitimacy of the decision of the Office of the Federal Antimonopoly Region in the Sverdlovsk Region (Sverdlovsk OFAS Russia) regarding “Uralvneshtsentr” Ltd., reported the press-centre of FAS Russia.
On 16th January 2012, Sverdlovsk OFAS Russia found that “Uralvneshtsentr” Ltd. violated Clause 3 Part 1 Article 10 of the Federal Law “On Protection of Competition”.
The company imposed disadvantageous contract conditions upon “Uralmetprom” Inter-branch Concern” CJSC for potable water delivery and waste water collection, obligating “Uralmetprom” Inter-branch Concern” CJSC to maintain property of “Uralvneshtsentr” Ltd.
Sverdlovsk OFAS Russia established that “Uralmetprom” Inter-branch Concern” CJSC was connected directly to the networks of “Uralvneshtsentr” Ltd. and was unable to receive water supply services by-passing networks of “Uralvneshtsentr” Ltd. For “Uralmetprom” Inter-branch Concern” CJSC, “Uralvneshtsentr” Ltd. is an economic entity that has dominant position.
“Thus, Sverdlovsk OFAS Russia found that “Uralvneshtsentr” Ltd. violated Clause 3 Part 1 Article 10 of the Federal Law “On Protection of Competition” by repeatedly forwarding letters with proposals about maintaining company property as well as forwarding a draft contract for potable water delivery and waste water collection that specified conditions on compensating expenses of water mains and sewage through which water was supplied to “Uralmetprom” Inter-branch Concern” CJSC”, commented the Head of Sverdlovsk OFAS Russia, Tatiana Kolotova.
Sverdlovsk Regional Arbitration Court also dismissed the claim of “Uralvneshtsentr” Ltd. to invalidate the decision of Sverdlovsk OFAS Russia.
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