OREANDA-NEWS. July 25, 2013. The Collegium of the Supreme Arbitration Court of the Russian Federation dismissed the claim of “Russian Railways” OJSC to transfer the case on violating the antimonopoly law by “Russian Railways” OJSC to the Presidium of the Supreme Arbitration Court to reconsider the ruling of the Federal Arbitration Court of the Moscow District.

On 18th January 2012, the Commission of the Federal Antimonopoly Service (FAS Russia) found that “Russian Railways” OJSC violated the antimonopoly law by coordinating activities of consumers of cabling-and-wiring products, which considerably decreased sales of such products by companies that are not members of the group of persons of “Russian Railways” OJSC (in breach of Part 5 Article 11 of the Federal Law “On Protection of Competition”).

The case was initiated upon a petition of “TransKatKabel” CJSC - a manufacturer of messenger cables and contact cooper and bronze wires, used for the needs of “Russian Railways” OJSC.

“Russian Railways” OJSC sent telegrams to consumers of cabling-and-wiring products used at the facilities of “Russian Railways” OJSC instructing them to purchase on a priority basis the products of “TRANSKAT” CJSC, a member of the same group of persons with “Russian Railways” OJSC and a direct competitor of “TransKatKabel” CJSC, while cabling-and-wiring products of other manufactures should be purchased only upon an agreement with the Department of “Russian Railways” OJSC for Electrification and Electric Power Supply.

As a result, sales of cabling-and-wiring products made by “TransKatKabel” CJSC reduced by 15 times and supplies of contact wires and messenger cables in the Russian Federation nearly came to a halt.

On 31st January 2013 the Federal Arbitration Court of the Moscow District agreed with the arguments put forward by the Federal Antimonopoly Service and upheld the judgment of Moscow Arbitration Court and the ruling of the 9th Arbitration Appeal Court, which confirmed legitimacy and reasonableness of the decision issued by the antimonopoly body.

“In our view, the case is question makes a precedent and is very important for many markets with vertically-integrated structures. Actions of the antimonopoly body are aimed at protecting companies that are not included in such structures and at creating equal competitive conditions on the markets”, pointed out the Head of FAS Department for Control over Industry and Defence Complex, Maxim Ovchinnikov.