Stavropol Branch of Rostelecom Abused Market Dominance
OREANDA-NEWS. November 16, 2012. The Federal Arbitration Court of the North Caucasus District supported the rulings of the 16th Arbitration Appeal Court and Stavropol Regional Arbitration Court to uphold the decision of the Office of the Federal Antimonopoly Service in the Stavropol Region (Stavropol OFAS Russia), reported the press-centre of FAS Russia.
On 15th December 2010, the Commission of Stavropol OFAS Russia found that Stavropol branch of “Rostelecom” OJSC violated Part 1 Article 10 of the Federal Law “On Protection of Competition” (abusing market dominance). The branch of “Rostelecom” OJSC imposed disadvantageous conditions upon economic entities by requiring signing a contract and annexes to it that specified the payment conditions for the services (leasing of space owned by “Rostelecom” OJSC, using infrastructure, etc.), that are already paid for by the units of Extradepartmental Protection Directorate at Central Internal Affairs Department in the Stavropol Region on the basis of previous contracts.
OFAS issued a determination to Stavropol branch of “Rostelecom” OJSC to stop the violations and fined it 1,934,108 Rubles.
The branch of “Rostelecom” OJSC disagreed with the actions of Stavropol OFAS Russia and filed a lawsuit. The Court of First Instance and the Appeal Court found the decision of the antimonopoly body unlawful and reversed the determination.
However, the Cassation Court reversed the rulings of lower Courts and forwarded the case for reconsideration to Stavropol Regional Arbitration Court. Stavropol Regional Arbitration Court and then the 16th Arbitration Appeal Court ruled that actions of Stavropol OFAS Russia were legitimate and reasonable. The Federal Arbitration Court of the North Caucasus District also supported the decision.
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