OREANDA-NEWS. On August 20, 2007 the 9th Arbitration Appeal Court dismissed the appeal of "Dal'svyaz" OJSC against the judgment passed by a first instance court, which confirmed validity of decision and determinations of the Federal Antimonopoly Service (FAS Russia) that due to a breach of the antimonopoly legislation "Dal'svyaz" must transfer illegally obtained income (over 200 mln. Rubles) to the federal budget, reported the press-centre of FAS Russia.

On 17th November 2005, FAS Russia found that "Dal'svyaz" had breached Clause 1 Article 5 of the Federal Law " On Competition and restricting Monopolistic Activity on Goods Markets".

The case was initiated with regard to the complaint of "Primtelephon" CJSC (offering services of mobile wireless telephony under the MTS brand).

"Dal'svyaz" breached the law by fixing and maintaining monopolistically high prices and creating such entry conditions to the goods market that put a particular or several economic agents in an unequal situation in comparison with another (other) economic agents.

Having considered the case, FAS Russia issued determinations to "Dal'svyaz" requesting to:

- Exclude the rates for "fortifying the communication network" from the price-lists for communication services offered to the operators;

- Add changes to the agreements on connecting and inter-network co-operation with "Primtelephon" CJSC on excluding provisions on paying the rates for "fortifying the communication network";

- Send offers on excluding provisions on paying the rates for "fortifying the communication network" from the agreements with "Dal'svyaz" for connection and inter-network co-operation.

"Dal'svyaz" disagreed with the decision and determinations if the antimonopoly authority and appealed.

The courts of all instances confirmed validity and the FAS Russia's decision.

Moreover, "Dal'svyaz"was issued a determination to transfer the profit obtained as a result of breaching the antimonopoly legislation - over 200 mln. Rubles - to the federal budget. Initially, the determination in question (which was also appealed by "Dal'svyaz" to the Arbitration Court) was было отменено в судебном порядке. However, the Federal Arbitration Court of the Moscow District discharged previous rulings passed by the court of first instance and the appeal court, and forwarded the case for reconsideration.

At the new hearing, the courts of two instances also confirmed validity of the position taken by the antimonopoly authority.