OREANDA-NEWS. September 24, 2012. Moscow Arbitration Court pronounced legitimacy of the decision of the Federal Antimonopoly Service (FAS Russia) regarding “RM-Tereks” Ltd. (earlier – “Special Equipment – GAZ Group” Ltd., further on referred to as “SGG” Ltd.), reported the press-centre of FAS Russia.

In March 2012, FAS found that “SGG” Ltd. and its dealers violated Clause 2 Part 1.2 Article 11 of the Federal Law “On Protection of Competition”, which prohibits “vertical” agreements between economic entities (except “vertical” agreements that can be allowed under Article 12 of the Federal Law “On Protection of Competition”).

To qualify “vertical” agreements, FAS needs to analyze the state of a competitive environment on a particular market. Having conducted such analysis, FAS established that in 2008-2010 “SGG” Ltd. consistently controlled over 20% of several markets.

“On 6th January 2012 the “third antimonopoly package” came into force. The changes to the antimonopoly law concern, in particular, “vertical” agreements. The FAS decision regarding “SGG” Ltd. constitutes a precedent because it was the first such decision made after the changes to the law and supported by the Arbitration Court”, pointed out the Head of FAS Cartel Department, Alexander Kinyov.

“RM-Tereks” Ltd. and all its dealers that concluded prohibited “vertical” agreements will be held administratively liable under Article 14.32 of the Code of the Russian Federation on Administrative Violations, which specifies the sanction – turnover fines.

A “vertical” agreement is an agreement between economic entities, one of which buys goods, and the other provides (sells) the goods. An agency agreement does not constitute a “vertical” agreement (Clause 19 Article 4 of the Federal Law “On Protection of Competition”).