OREANDA-NEWS. March 18, 2013. Kaliningrad Office of the Federal Antimonopoly Service (Kaliningrad OFAS Russia) defended at courts its decision that “Kaliningradgazifikatsia” OJSC abused its dominance on the market of housing & utilities.

In December 2011, residents of Kaliningrad region complained to Kaliningrad OFAS Russia about unreasonably high prices fixed by “Kaliningradgazifikatsia” OJSC assembling gas-consumption metering devices.

Investigating the case, the Commission of Kaliningrad OFAS Russia found that the company’s actions have signs of abusing dominant position (in breach of Part 1 Article 10 of the Federal Law “On Protection of Competition”).

“The company fixed prices for the materials used in installing gas meters and prices for making estimates for carrying out such works in breach of the pricing procedures”, pointed out the Head of Kaliningrad OFAS Russia, Olga Bobrova.

“Kaliningradgazifikatsia” OJSC disagreed with OFAS decision and approached Courts of three instances, which dismissed the claim.

The Supreme Arbitration Court of the Russian Federation drew a line on the case upholding the rulings of all instances.

OFAS imposed an administrative fine (1.2 million Rubles) for violating the Federal Law “On Protection of Competition”.

Reference:

1) In February 2013, Kaliningrad OFAS Russia made another decision that “Kaliningradgazifikatsia” OJSC violated the Federal Law “On Protection of Competition”. According to OFAS, the company calculated the price for assembling a gas meter for a resident of the regional capital city.

2) Part 1 Article 10 of the Federal Law “On Protection of Competition” prohibits actions (omissions) of an economic entity with dominant position that lead or can lead to preventing, restricting, eliminating competition and (or) infringing the interests of other persons.