OREANDA-NEWS. November 30, 2012. The Office of the Federal Antimonopoly Service in the Vologda Region (Vologda OFAS Russia) fined “Vologda Milk Integrated Plant” Production Cooperative around 2.5 million Rubles, reported the press-centre of FAS.   

Earlier Vologda OFAS Russia received a complaint from “Arkhangelsk Milk Company” CJSC about concerted actions between “Vologda Milk Integrated Plant” Production Cooperative and an individual entrepreneur Ldinin that had signs of a vertical agreement.

The Commission of Vologda OFAS Russia established that “Vologda Milk Integrated Plant” Production Cooperative had increased ex-works prices for dairy products for the buyer - “Arkhangelsk Milk Company” CJSC - by10%, while prices for another buyer – an individual entrepreneur Ldinin –were reduced by 3%. Later “Vologda Milk Integrated Plant” Production Cooperative completely terminated supplying products of “Arkhangelsk Milk Company” CJSC, notifying the company in writing in advance.

Such actions of “Vologda Milk Integrated Plant” Production Cooperative resulted in decreased sales of dairy products of “Arkhangelsk Milk Company” CJSC and then in full termination of production.

Based on the above, Vologda OFAS Russia found that “Vologda Milk Integrated Plant” Production Cooperative violated Articles 11 and 12 of the Federal Law “On Protection of Competition” (concerted actions of economic entities, “vertical” agreements) and filed the violator 2,474,991 Rubles.

“The Production Cooperative had a strict line against the buyer on the market and the law regulates such conduct”, commented Deputy Head of Vologda OFAS Russia, Valentin Schepilin.