OREANDA-NEWS. June 10, 2014. “EUROCEMENT Group” and “Kavkazcement” will pay over 54 million RUB for violating the antimonopoly law

The Arbitration Court of the Karachaevo-Cherkessia Republic pronounced legitimacy of the decision and determination of the Office of the Federal Antimonopoly Service in Karachaevo-Cherkessia with regard to “EUROCEMENT Group” CJSC and “Kavkazcement” CJSC.

Earlier, 48 local entrepreneurs complained to Karachaevo-Cherkessia OFAS about actions of the dominant economic entity - “Kavkazcement” CJSC and its only agent - “EUROCEMENT Group” CJSC.

Investigating the case, OFAS Commission established that the buyer is deprived of a possibility to buy cement from “Kavkazcement” CJSC under the conditions of self-delivery, without using agent’s services.

Also the price of cement sold by “Kavkazcement” CJSC under the conditions of self-delivery is considerably higher than the price, at which companies from neighbouring regions buy cement, although “Kavkazcement” CJSC incur the costs of delivering cement to the buyers in the neighbouring regions.

As a result, on 30 August 2013, Karachaevo-Cherkessia OFAS found that the complaint of 48 entrepreneurs was justified: Clause 5 Part 1 Article 10 of the Federal Law “On Protection of Competition” prohibits abusing dominant position in the form of unreasonable refusals or avoiding contracts with particular buyers (customers).

OFAS issued a determination to enterprises to stop the violation of the antimonopoly law and abolish discriminatory conditions for the 48 entrepreneurs in the Republic.

Enterprises disagreed with OFAS decision and determination; however, the Arbitration Court of the Karachaevo-Cherkessia Republic upheld them.

“Kavkazcement” CJSC will have to pay 50 million RUB fine for violating the antimonopoly law and “EUROCEMENT Group” CJSC – 4,300,000 RUB.