Court Confirms Legitimacy of FAS Warning Issued to NovoNordisk
OREANDA-NEWS. March 27, 2014. Moscow Arbitration Court confirmed legitimacy of a warning issued by the Federal Antimonopoly Service (FAS Russia) to “Novo Nordisk” Ltd. due to elements of violating Clauses 3 and 5 Part 1 Article 10 of the Federal Law “On Protection of Competition”. “Novo Nordisk” Ltd. was imposing disadvantageous contract conditions for supplying medicines and unreasonably avoided concluding a contract with “Severo-Zapad Business Enterprise” CJSC.
FAS warned “Novo Nordisk” Ltd. about the need to eliminate elements of violating the antimonopoly law. The company partly executed the warning and voluntarily removed disadvantageous contract conditions.
At the same time, “Novo Nordisk” Ltd. considered that FAS conclusions about elements of violating the antimonopoly law were unlawful and filed a lawsuit to the Arbitration Court.
Moscow Arbitration Court, however, supported FAS and fully dismissed the claim.
“FAS has initiated a case against “Novo Nordisk” Ltd. The company did not listen to the warning not to avoid concluding a contract. Avoiding a contract without economic and technological justification constitutes abusing market dominance, and FAS intends to investigate whether actions of “Novo Nordisk” Ltd. were justified”, commented Deputy Head of FAS Department for Control over Social Sphere and Trade, Nadezhda Sharavskaya.
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