OREANDA-NEWS. May 26, 2014. The 12th Arbitration Appeal Court dismissed the claims of the “Savings Bank of Russia” OJSC, the “Consolidated Payment Processing Centre” OJSC (Engels) and “Saratovenergo” OJSC on invalidating a decision of the Joint Commission of Saratov OFAS Russia and the Main Department of the Central Bank of the Russian Federation in the Saratov region that the Bank and the Payment Processing Centre had violated Part 4 Article 11 of the Federal Law “On Protection of Competition”.

Investigating earlier a case against “Saratovenergo” OJSC on violating the antimonopoly law, Saratov OFAS Russia exposed some elements of violating the Federal Law “On Protection of Competition” by the “Consolidated Payment Processing Centre” OJSC and initiated a case. 16 credit organizations that concluded contracts with the “Consolidated Payment Processing Centre” OJSC were also brought into the proceedings as respondents.

In the course of the investigation, Saratov OFAS Russia established that the “Consolidated Payment Processing Centre” OJSC (Engels) and “Saratovenergo” OJSC concluded a contract for rendering services, particularly, for issuing billing advices for payment for electric power and accepting payments for electric power from consumers. An appendix to the contract approved the billing advice form that did not contain mandatory bank details for funds transfer. Under such conditions, residents of apartment houses in Engels were restricted in possibilities to pay for housing-and-utilities services. They were able to make payments for housing-and-utilities services only in those credit organizations that signed a contract and that knew the receiver’s bank details. The “Savings Bank of Russia” OJSC, “Svyaz-Bank” OJSC and “Naratbank” Ltd. also approved the above billing advice form.

As a result of concluding and implementing contracts with an approved billing advice form, competition on the market of payments from physical persons in Engels was restricted.

In view of the above, the Commission found that the “Savings Bank of Russia” OJSC, “Svyaz-Bank” OJSC, “Naratbank” Ltd., the “Consolidated Payment Processing Centre” OJSC (Engels) and “Saratovenergo” OJSC violated Part 4 Article 11 of the Federal Law “On Protection of Competition”.

According to Saratov OFAS Russia, the “Savings Bank of Russia” OJSC, “Svyaz-Bank” OJSC and “Naratbank” Ltd. thought that their actions did not violate the antimonopoly law because they did not take part in drafting the billing advice form and did not initiate concluding the contracts. However, the prohibition of concluding and participating in competition-restricting agreements specified in Article 11 of the Federal Law “On Protection of Competition” applies to all participants of such agreements regardless of who initiated an agreement and who proposed the form and the content of the agreement.

The proceedings against credit organizations were terminated since they did not coordinate the billing advice form.

The “Savings Bank of Russia” OJSC, the “Consolidated Payment Processing Centre” OJSC (Engels) and “Saratovenergo” OJSC disagreed with the decision of the Joint Commission of Saratov OFAS Russia and the Main Department of the Central Bank of the Russian Federation in the Saratov region on the case on violating the antimonopoly law and attempted to challenge it. Two Court Instances, however, confirmed legitimacy of the decision issued by the antimonopoly body.