OREANDA-NEWS. February 04, 2013. Moscow Arbitration Court confirmed the decision of the Federal Antimonopoly Service (FAS Russia) regarding a cartel of suppliers of stores and equipment for the needs of the Ministry of Interior of the Russian Federation, reported the press-centre of FAS Russia.

On 13th June 2012, FAS found that 32 suppliers of stores and equipment for the needs of the Russian Ministry of Interior concluded a competition-restricted agreement that led to maintaining maximum prices at competition bidding (in breach of Clause 2 Part 1 Article 11 of the Federal Law “On Protection of Competition”).

The cartel of suppliers of stores and equipment operated in 2010. The subject matter of the collusion was dividing 39 lots for stores and equipment for the needs of the Departments of Interior in Smolensk, Vologda, Pskov, Tula and Murmansk regions.

Cartel participants acted uniformly on the basis of a preliminary agreement: they registered to take part in competitive bidding, then refused to compete and, as a result, one of them was able to win the right to conclude a government contract at the maximum possible price.

“This cartel stopped existing in 2011 because upon a FAS initiative provisions about open auctions in the electronic form were introduced to the Federal Law “On State and Municipal Procurement of Goods, Works and Services”. It deprived participants to the agreement from making arrangements about dividing lots before the start of competitive bidding”, said the Head of FAS Anti-Cartel Department, Alexander Kinyov.

Cartel participants shall be held administratively liable.

FAS forwarded the materials of the antimonopoly case to the Ministry of Interior or initiate a criminal case under Article 178 of the Criminal Code of the Russian Federation.

Reference:

1. Clause 2 Part 1 Article 11 of the Federal Law “On Protection of Competition”: classifies as cartels and prohibits agreements between economic entities – competitors (economic entities selling goods on the same market), if such agreements lead or can lead to increasing, reducing or maintaining prices at auctions.