OREANDA-NEWS.  July 18, 2014. The Federal Arbitration Court of the Central District reversed judicial acts of lower instances on a case on “Smolenskpassazhirtrans” Ltd. unlawfully charging a commission for advance booking of travelling by buses. Now “Smolenskpassazhirtrans” Ltd. must transfer 2.7. million RUB to the budget as illegally obtained income to the federal budget.

In summer 2013, upon investigating a petition of a Smolensk resident, the Office of the Federal Antimonopoly Service in the Smolensk region (Smolensk OFAS Russia) found that “Smolenskpassazhirtrans” Ltd. – Smolensk Bus Terminal – abused dominance and violated Part 1 Article 10 of the Federal Law “On Protection of Competition”. Selling tickets for regular inter-regional, intra-regional and commuter transportation, the company charged an additional fee in the form of a commission from passengers:

- Inter-regional routes – 42 RUB

- Intra-regional routes – 27 RUB

- Commuter routes – 10 RUB.

Smolensk OFAS Russia established that only “Smolenskpassazhirtrans” Ltd. had been selling such tickets in Smolensk; according to the order by the managements of Bus Terminal all travelers who were buying tickets more than 24 hours before bus departure had to pay an additional fee. At the same time, the Department of the Smolensk Region for Electric Power Industry, Energy Efficiency and Tariff Policy factored in the costs of paying for bus terminal services in the tariffs for passenger and luggage transportation.

The sum of illegal income reached 2.7 million RUB.

Upon the outcome of the case investigation, Smolensk OFAS Russia issued a determination to “Smolenskpassazhirtrans” Ltd. To transfer to the federal budget unlawfully obtained monetary funds and stop charging commission from passengers for advanced ticket sales.

“Smolenskpassazhirtrans” Ltd. Disagreed with the decision and determination of Smolensk OFAS Russia and filed a lawsuit to Arbitration Court, so the company was able not to execute the determination.

The Courts of First Instance and Appeal Court supported “Smolenskpassazhirtrans” Ltd. and pronounced OFAS decision invalid. The Federal Arbitration Court of the Central District reversed the judgment and the ruling of the lower Courts and passed a new ruling to dismiss the company’s claim.

As explained Deputy Head of Smolensk OFAS Russia, the Head of Department for Control over Economic Concentration and Natural Monopolies, Andrey Romanov, “transferring the income unlawfully obtained by “Smolenskpassazhirtrans” Ltd. to the federal budget is a liability of the violator of the antimonopoly law to compensate the State and does not relieve the company of its liability to those consumers of its services that already paid the commission. Those consumers can demand the company to return the unlawfully obtained funds through judicial proceedings”.

Part 1 Article 10 of the Federal Law “On Protection of Competition” prohibits actions (omissions) of an economic entity with dominant position that lead or can lead to preventing, restricting, eliminating competition and (or) infringing the interests of other persons, particularly, breaching the pricing procedures established by normative legal acts (Clause 10).