OREANDA-NEWS. July 25, 2013. Rostov Regional Arbitration Court supported the decision and determination of the Office of the Federal Antimonopoly Service in the Rostov Region (Rostov OFAS Russia) regarding “Ashan” hypermarket, which unreasonably delayed concluding contracts with suppliers of food products.

On 19th February 2013 the Commission of Rostov OFAS Russia established that “Ashan” hypermarket did not have regulated procedures for concluding contracts with suppliers of food products, so pecontractual negotiations with potential suppliers could be delayed indefinitely. In particular, the precontractual process between “Ashan” Ltd. and “Don Canning Factory” Ltd. lasted 18 months.

The Commission of Rostov OFAS Russia also proved that as a result of absence of regulated procedures for concluding contracts with suppliers “Ashan” Ltd. prevents entry to the market in breach of Sub-Clause “a” Clause 1 Part 1 Article 13 of No. 381 Federal Law “On the Fundamental Principles of Government Regulation of Trading Activities”.

“There are no acts adopted by “Ashan” hypermarket clearly regulating the procedures for interaction between the trading network and its potential suppliers, which excludes “transparency” of contracting procedure. In its turn, it can prevent market entry of food products suppliers” commented Deputy Head of Rostov OFAS Russia, Natalia Kozhemyako.

Having investigated the case, OFAS issued a determination to “Ashan” Ltd. to eliminate the violation of the law on trade. “Ashan” Ltd. disagreed with the decision and determination of Rostov OFAS Russia and filed a lawsuit; however, Rostov Regional Arbitration Court dismissed the claim.