OREANDA-NEWS. September 18, 2014. Moscow Arbitration Court dismissed the claim of the Cabinet of Ministers of the Republic of Chuvashia to invalidate FAS decision on an antimonopoly case.

On 6th March 2014, the FAS Commission found that Chuvash Cabinet of Ministers violated Part 1 Article 15 of the Federal Law “On Protection of Competition”.

The case was initiated upon a petition of a managing company from Cheboksary (“Deon” Managing Company” Ltd.) and the results of inspections carried out by Chuvashia OFAS.

The Commission established that on 14.12.2012 Chuvash Cabinet of Ministers issued a list of instructions, under which by 01.04.2013 Cheboksary Authority had to transfer at least 95% accounts of customers utility services, provided by managing companies (housing associations), to “RKTs” OJSC in Cheboksary.

Upon receiving the List, Cheboksary Authority had several meetings and gave instructions to District Authorities to interact precisely with “RKTs” OJSC. The instructions were executed.

Having examined the case materials the Commission concluded that Chuvash Cabinet of Ministers had directly created advantages for “RKTs” OJSC in comparison with its competitor – “ChGES” OHSC, which could lead to monopolizing the market.

Chuvash Cabinet of Ministers appealed FAS decision but Moscow Arbitration Court dismissed the claim.

Part 1 Article 15 of the Federal Law “On Protection of Competition” prohibits federal executive bodies, the authorities of the subjects of the Russian Federation, local self-government bodies, other bodies or organizations exercising the functions of the above bodies, organizations involved in rendering state or municipal services, as well as state extra-budgetary funds, the Central Bank of the Russian Federation, to pass acts and (or) exercise actions (omissions) that lead or can lead to preventing, restricting, eliminating competition, except cases of passing acts and (or) exercising such actions (omissions)provided for by federal laws.

Under Article 176 of Arbitration Procedural Code of the Russian Federation, preparing a judgment of Arbitration Court in full can be suspended for a period not exceeding five days, the date of drawing a judgment in full is considered the date of passing the judgment.

Under Article 180 of Arbitration Procedural Code, a judgment of Arbitration Court of First Instance comes into force upon a month after it was passed if an appeal is not lodged. If an appeal is lodged, and the judgment is not reversed or changed, it comes into effect on the day when Arbitration Appeal Court passes the ruling.