OREANDA-NEWS. May 22, 2013. The Federal Antimonopoly Service initiated a case against Moscow Health Department and “Stolichnie Apteki” State Unitary Enterprise upon signs of violating the Federal Law “On Protection of Competition” (Articles 15, 16) in a tender for supplying baby food to state health care institutions in Moscow in 2013.

Health care and social security of the population of Moscow is a prerogative of Moscow City Authority. Therefore, the need of Moscow state health care institutions in supplies of baby dairy products constitutes a state need and must be satisfied in accordance with No,94-FZ Federal Law “On Procurement…”. Instead of state procurement procedures, however, Moscow Health Department instructed “Stolichnie Apteki” to place an order for supplying baby dairy products to Moscow sate health care institutions in accordance with the Federal Law “On Procurement of Goods, Works, Services by Certain Types of Legal Entities” (No.223-FZ). Later, to compensate the costs, “Stolichnie Apteki” was subsidized 1,950,000 Rubles from the Moscow budget.

The FAS Commission will consider the case on 11th July 2013.

Reference:

1.Under Article 15 of the Federal Law “On Protection of Competition”, federal executive bodies, the authorities of the constituent territories of the Russian Federation, local self-government bodies, other bodies and organizations exercising the functions of the above bodies, organizations rendering state and municipal services, as well as state extra-budgetary funds, the Central Bank of the Russian Federation are prohibited to pass acts and (or) exercise actions (omissions) that lead or can lead to preventing, restricting, eliminating competition, except cases of adopting acts and (or) exercising such actions (omissions) provided for by the federal laws

2. Article 16 of the Federal Law “On Protection of Competition” prohibits agreements between the federal executive bodies, the authorities of the constituent territories of the Russian Federation, local self-government bodies, other bodies and organizations exercising the functions of the above bodies, as well as state extra-budgetary funds, the Central Bank of the Russian Federation or between them and economic entities, or exercising concerted actions by such bodies and organizations if such agreements or concerted actions lead or can lead to preventing, restricting, eliminating competition