OREANDA-NEWS. June 26, 2013. The Federal Antimonopoly Service (FAS Russia) initiated a case against the Cabinet of Ministers of the Republic of Chuvashia and Cheboksary City Authority upon signs of violating Part 1 Article 15 of the Federal Law “On Protection of Competition”.

The case was initiated upon a petition of “Deon” Managing Company” Ltd., where the petitioner indicated that Cheboksary City Authority created unreasonable advantages for “RKTs” OJSC forcing managing companies and other housing organizations in Cheboksary to conclude fee-based contracts with “RKTs” OJSC.

Documents obtained by the antimonopoly body show that Cheboksary City Authority had passed No. 477 Decree “On Organizing the Work of “Payment Processing Centre” Open Shareholding Company” of 31st October 2012. The Decree contains recommendations, particularly, for managing companies to conclude contracts with “RKTs” OJSC for the services for calculating, accepting and forwarding housing-and-utility payments from the population to suppliers of utility resources.

According to the available information, later 10 out of 76 managing organizations in Cheboksary used the services of “RKTs” OJSC, including 7 of them – within the period specified in the Decree; 4 organizations terminated similar contractual relations with a competitor of “RKTs” OJSC – “ChGES” OJSC.

FAS also identifies signs of a similar violations in the actions of the Cabinet of Ministers of the Republic of Chuvashia – issuing a list of instruction in December 2012 to transfer at least 95% accounts of consumers of utility services in Cheboksary to “RKTs” OJSC.

The date of the case consideration will be scheduled within 15 days after the case opening.

Reference:

Under Part 1 Article 15 of the Federal Law “On Protection of Competition” prohibits 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 involved in rendering state and municipal services, as well as state extra-budgetary funds, the Central Bank of the Russian Federation to pass acts and (or) exercise actions (omissions) that lead or can lead to preventing, restricting, eliminating competition, except cases of passing acts and (or) exercising such actions (omissions) provided for by the federal laws.