OREANDA-NEWS. July 22, 2013. The Federal Arbitration Court of the North-Caucasus District confirmed legitimacy of the fine (18,343,116 Rubles) imposed by the Office of the Federal Antimonopoly Service in the Republic of Dagestan (Dagestan OFAS Russia) upon “Dagestan Power Supply Company” OJSC (“DESK”) for abusing market dominance.

On 5th August 2011, Dagestan OFAS Russia found that “DESK” OJSC violated Part 1 Article 10 of the Federal Law “On Protection of Competition” (abusing market dominance). OFAS issued a determination to the company to conclude a contract for buying-and-selling (supplying) power with “Malie GES Dagestana [Dagestan Small Hydroelectric Power Plants]” OJSC.

“DESK” OJSC explained that concluding the contract would be economically inexpedient. Avoiding the contract resulted in putting the relevant small hydroelectric power plants to a halt.

“DESK” OJSC disagreed with the decision and determination issued by Dagestan OFAS Russia and filed a lawsuit; however, three Arbitration Courts dismissed the claim. “DESK” OJSC is held administratively liable and was imposed a fine in the amount of 18,343,116 Rubles. The company challenged the administrative fine at Court requesting to decrease it to 300,000 Rubles. However, the Arbitration Court of the Republic of Dagestan, the 16th Arbitration Appeal Court and the Federal Arbitration Court of the North-Caucasus District dismissed the claim of “DESK” OJSC and pronounced legitimacy of the fine imposed by Dagestan OFAS Russia.

“Power supplying companies must remember that abusing market dominance power incurs administrative liability. We are pleased that we were able to protect the interests of “Dagestan Small Hydroelectric Power Plants]” OJSCat Courts”, pointed out the Head of Dagestan OFAS Russia, Kurban Kubasaev.