OREANDA-NEWS. November 07, 2012. The Office of the Federal Antimonopoly Service in the Republic of Dagestan (Dagestan OFAS Russia) fined “DESK” OJSC over 18 million Rubles for abusing market dominance, reported the press-centre of FAS Russia.

In the OFAS opinion, the company refused to prolong a contract with “Dagestan Small Hydroelectric Power Stations” OJSC for buying-and-selling electric power.

Dagestan OFAS Russia obligated the energy company to conclude the contract with “Dagestan Small Hydroelectric Power Stations” OJSC by 5th September 2011.

However, “DESK” OJSC thought that the decision of the Antimonopoly Service had been unjustified and filed a lawsuit to the Arbitration Court of the Republic of Dagestan.

In February 2012, the Arbitration Court supported OFAS decision and dismissed the claim of “DESK” OJSC. The energy company appealed the judgment to a Court of higher instance. Nevertheless, in May 2012, the 16th Arbitration Appeal Court dismissed the appeal of “DESK” OJSC and upheld the judgment of the Court of lower instance.

Dagestan OFAS Russia initiated an administrative case against the energy company for abusing market dominance.

Having investigated the case, OFAS fined “DESK” OJSC 18,343,116 Rubles.

“DESK” OJSC abused its dominance on the market of supplying (sale) of electric power in the Republic of Dagestan. “DESK” OJSC refused to conclude (prolong) the contract with “Dagestan Small Hydroelectric Power Stations” OJSC for buying-and-selling electric power, which resulted in small hydroelectric power stations coming to a halt and “Dagestan Small Hydroelectric Power Stations” OJSC withdrew from the market of supplying (sale) of electric power. For this we imposed the multi-million fine upon the energy company”, the Head of Dagestan OFAS Russia, Kurban Kubasaev, commented the determination on imposing the fine.