Refusal of Vologda Sales Company to Execute Contract Is Unlawful
OREANDA-NEWS. December 06, 2012. The 14th Arbitration Appeal Court confirmed legitimacy of the fine imposed by the Office of the Federal Antimonopoly Service in the Vologda Region (Vologda OFAS Russia) upon “Vologda Sales Company” OJSC (“VSK” OJSC) (4,630,000 Rubles), reported the press-centre of FAS Russia.
In April 2010, Vologda OFAS Russia received a complaint from Totemsky Electrical Engineering Service that “VSK” OJSC unilaterally refused to execute a power supply contract. Totemsky Electrical Engineering Service has obligations to supply electric power to the population of the region and economic entities, including those that cannot be disconnected.
The Commission of OFAS Russia found that “VSK” OJSC violated Part 1 Article 10 of the Federal Law “On Protection of Competition” (abusing market dominance) and issued a determination to withdraw the letter about the unilateral refusal to execute the power supply contract with Totemsky Electrical Engineering Service and restore the position that had existed before terminating the contract. OFAS also imposed a turnover fine upon “Vologda Sales Company” OJSC – 4,630,000 Rubles.
“VSK” OJSC challenged the decision of the antimonopoly body at Vologda Regional Arbitration Court and then at Arbitration Appeal Court. Both Courts of Law confirmed legitimacy of the decision made by Vologda OFAS Russia and the fine imposed upon the company.
“Small and medium business can and must protect themselves from such monopolists as “Vologda Sales Company” OJSC, resorting to protection by antimonopoly bodies and courts of law”, pointed out Deputy Head of Vologda OFAS Russia, Vyacheslav Khlevchuk.
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