Court Took Side of FAS & Dismissed Farmer’s Claim
OREANDA-NEWS. May 30, 2014. Moscow Arbitration Court confirmed legitimacy of the decision issued by the Federal Antimonopoly Service (FAS Russia) that the rates of “Russko-Polyansky Elevator” for grain shipment corresponds to the amount of costs and profit and was not monopolistically high.
The case was initiated upon a claim of an individual entrepreneur – the head of a farm, Aramis Bozoyan. In his opinion, “Russko-Polyansky Elevator” OJSC fixes monopolistically high prices for grain shipments purchased from the State intervention fund and also unreasonably refuses to provide grain shipment services in the Omsk region.
Investigating the case, FAS analyzed the market and established that “Russko-Polyansky Elevator” OJSC had the dominant position.
Having analyzed the elevator’s cost calculation, however, FAS concluded that the tariff for gain shipment does not exceed the amount of the costs and profit required to render services and is not monopolistically high. It is comparable with the rates of other elevators for such services.
FAS also did not establish any facts of the Elevator refusing to ship grain to consumers: shipments took place based on technological possibilities if there are drawn up applications.
FAS terminated the proceedings due to absence of violations of the antimonopoly law by “Russko-Polyansky Elevator” OJSC.
The head of a farm, Aramis Bozoyan, disagreed with the FAS decision and challenged it in the Arbitration Court, which examined the case materials and confirmed legitimacy of the FAS decision.
“Russko-Polyansky Elevator” OJSC itself challenged the FAS decision in the part of recognizing the company dominant position. The Court also dismissed the claim.
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