OREANDA-NEWS. March 25, 2013. Arbitration Court of the Sakhalin Region confirmed legitimacy of the decision and determination of the Office of the Federal Antimonopoly Service in the Sakhalin Region (Sakhalin OFAS Russia) regarding “Ilada” Ltd., “Delta Industria” Ltd., and “Sigal Bridge Corporation” Ltd. The antimonopoly body found that the companies were engaged in bid-rigging (Clause 2 Part 1 Article 11 of the Federal Law “On Protection of Competition”).

Sakhalin OFAS Russia initiated a case upon petitions of the “Yuzhno-Kurilsk Town District” Municipal Authority and the “Department for Capital Construction of “Okhtinsky” Town District” Municipal Budget-Funded Institution. Investigating the case, OFAS established that “Ilada” Ltd., “Delta Industria” Ltd., and “Sigal Bridge Corporation” Ltd. concluded an agreement that resulted in maintaining prices at an open electronic auction for carrying out the works on an 18-apartment residential house in Yuzhno-Kurilsk township and “capital repair a District Cultural Centre” in Okha.

In the course of considering second parts of the bids, the dumping companies (“Delta Industria” Ltd. and “Sigal Bridge Corporation” Ltd.) were found unfit to participate in the auction due to absence of competency certificates issued by a self-regulating organization.

Thus, the companies ensured that the winner became “Ilada” Ltd., which offered the contract price after the companies had made their offers.

“Cartels are “horizontal” anticompetitive agreements which are the most dangerous for the economy and society – agreements between competitors operating in the same industry. Combating cartels will remain one of priorities for Sakhalin OFAS Russia”, commented the Head of Sakhalin OFAS Russia, Georgy Tychenok.