OREANDA-NEWS. August 05, 2013. The Commission of Office of the Federal Antimonopoly Service in the Rostov region (Rostov OFAS Russia) exposed bid-rigging involving “Millerovskoye DSU” Ltd., “Azov Maintenance Depot” State Unitary Enterprise of the Rostov region and “Montazhgazspetsstroi” Ltd. at an auction for maintaining 310.3 km of regional and municipal highways in the Azov and Kagalnitsky districts.

Investigating the case, the Commission of Rostov OFAS Russia established that the companies concluded agreements to maintain pries at auctions. Although four companies were allowed to take part in the auction, only one bidder filed a price bid - “Azov Maintenance Depot”, reducing the initial contract price only by 0.5%. As a result, the company concluded the government contact for 106,588,788.94 Rubles.

“OFAS Commission studied the arguments put forward by the auction bidders that attempted to justify their passive behavior at the auctions. However, the Commission concluded that there had been no objective circumstances for such behavior”, said Deputy Head of Rostov OFAS Russia, Natalia Kozhemyako. “As a result, each cartel member will have to pay an administrative fine in accordance with the Code of the Russian Federation on Administrative Violations – from 10 to 50 % of the initial contract price”.

Under Clause 2 Part 1 Article 11 of the Federal Law “On Protection of Competition” agreements between competitors that lead or can lead to increasing, reducing or maintaining prices at auctions shall be recognized as cartels.