OREANDA-NEWS. March 17, 2014. The Commission of the Federal Antimonopoly Service (FAS Russia) found that the Cabinet of Ministers of the Republic of Chuvashia and Cheboksary Authority violated Part 1Article 15 of the Federal Law “On Protection of Competition”.

Chuvashia authorities purposefully exercised actions aimed at monopolizing the market by a payment processing centre (“RKTs” OJSC).

The case was initiated upon a petition of a managing company in Cheboksary (“Deon” Managing Company” Ltd.) as well as the results of inspections carried out by Chuvashia OFAS Russia.

Documents received by the antimonopoly body showed that on 31.10.2012 Cheboksary Authority passed No. 477 Decree “On Organizing the Work of “Payment Processing Centre” OJSC with recommendations to managing organizations and other organizations involved in the housing and utility complex in Cheboksary to conclude contracts with “RKTs” OJSC by 01.11.2012 for rendering services for calculating, accepting and transferring housing-and-utility payments of the population to resource providers.

When the Decree was issued, Cheboksary Authority also held a number of meetings, following which district authorities in Cheboksary received and executed the instructions to support cooperation of managing organizations with “RKTs” OJSC. On 14.12.2012 the Cabinet of Ministers of the Republic of Chuvashia issued recommendations to Cheboksary Authority to move by 01.04.2013 no less than 95% of the accounts of consumers of utility services provided by utility companies (homeowners associations) in Cheboksary for servicing by “RKTs” OJSC, that is - the work started by Cheboksary Authority.

According to the case materials, as a result of those actions 15 managing organizations moved their business to “RKTs” OJSC.

In the course of the investigation, the Cabinet of Ministers of the Republic of Chuvashia abolished the recommendation in question and the Commission terminated the case on violating the antimonopoly law.

Since Cheboksary Authority did not eliminate the violation so OFAS issued a determination to Cheboksary Authority to eliminate the violation and exercise actions and aimed at supporting competition.

At the same time, it should be noted that the Commission terminated proceedings against district authorities in Cheboksary, which had also been brought to the case as respondents, due to absence of violations of the antimonopoly law because district authorities are subordinate to the city authority.

The decision and determination on the case will be prepared within ten working days after being issued, and then placed on the web-site of FAS Russia.

Reference:

Part 1Article 15 of the Federal Law “On Protection of Competition” prohibits federal executive bodies, the authorities of the constituent territories of the Russian Federation, local authorities, 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 adopting acts and (or) exercise actions (omissions) that lead or can lead to preventing, restricting, eliminating competition, except cases of adopting acts and (or) exercising actions (omissions) provided for by the federal laws.