OREANDA-NEWS. February 06, 2013. The Federal Arbitration Court of the Moscow District agreed with the arguments of the Federal Antimonopoly Service (FAS Russia) and upheld the judgment of Moscow Arbitration Court and the ruling of the 9th Arbitration Appeal Court in Moscow on a case against “Russian Railways” OJSC, which the Courts found guilty in coordinating operations of independent economic entities, reported the press-centre of FAS Russia. 

On 18th January 2012, the FAS Commission found that “Russian Railways” OJSC violated the antimonopoly law by exercising actions aimed at coordinating activities of consumers of cable-and-conductor products, as a result of which the volume of sale of the products of economic entities that are not members of the same group of persons with “Russian Railways” OJSC was reduced (in breach of Part 5 Article 11 of the Federal Law “On Protection of Competition”).

The case was initiated upon a petition of “TransKatKabel” CJSC – a manufacturer of bearer cables, contact copper and contact bronze wires for the needs of “Russian Railways” OJSC.

“Russian Railways” OJSC sent telegrams to contractors carrying out the works for electrification of railway tracks to request priority purchasing of the products of “TRANSKAT” CJSC, which is a member of the same group of persons with “Russian Railways” OJSC and is a direct competitor of “TransKatKabel” CJSC, while cable-and-conductor products of other manufacturers should be purchased only upon an agreement by the Department of Electrification and Energy Supply of “Russian Railways” OJSC.

To justify such telegrams, “Russian Railways” OJSC pointed out that the products of “TransKatKabel” CJSC did not meet the quality standards. However, FAS established that products supplied by the company are subject to mandatory certification and are allowed for use at the facilities of “Russian Railways” OJSC.

As a result of such actions of “Russian Railways” OJSC, the volume of production of cable-and-conductor products of “TransKatKabel” CJSC reduced by 15 times, and supplies of contact wires and bearer cables in the Russian Federation practically stopped.

Reference:

Part 5 Article 11 of the Federal Law “On Protection of Competition” prohibits physical persons, commercial organizations and non-commercial organizations to coordinate economic activities of market agents if such coordination leads to any of the consequences specified in Parts 1 - 3 Article 11, that cannot be allowed under Articles 12 and 13 of this Federal Law or that are not provided for by federal laws.