OREANDA-NEWS. April 03, 2008. The Appellate Instance of the Arbitration Court uphold the ruling of the Chelyabinsk Regional Arbitration Court which recognized validity of the decision and determinations issued by Chelyabinsk Office of the Federal Antimonopoly Service (FAS Russia) against "ROSNO" OJSC which was engaged in anticompetitive actions on the market of offering services on compulsory civil liability motor-vehicle insurance. "ROSNO" OJSC did not appeal against the ruling and transferred to the federal budget the income in the amount of 103194 Rubles 02 kopecs (100 % of the contract value) and, therefore, fulfilled the determinations of the antimonopoly office, reported the press-centre of FAS Russia.

Chelyabinsk OFAS Russia established that in February 2007 the Department of the State Highways Supervision in the Chelyabinsk Region organized a tender for the governmental contract on offering services of compulsory civil liability motor-vehicle insurance, on the books of the governmental body.

Five insurance companies submitted their bids; "Rosgosstrakh-Ural" Ltd., "ROSNO" OJSC and "YuzhUral-Asco" Ltd were among the preqilified companies.

The Tender Commission declared "ROSNO" OJSC the winner as the bidder that offered the best contract execution conditions.

In course of consideration of the case imitated upon a petition "YuzhUral-Asco" Ltd., that disagreed with the tender results, the antimonopoly office established that "ROSNO" OJSC offered the contract price, calculated with breaching the rates set by the resolution of the Government of the Russian Federation "On Approving the Insurance Rates for Compulsory Civil Liability Motor-Vehicle Insurance, their Structure and Proceedings to Be Used by the Insurers in Defining the Premium".

Governed by the Federal Law "On Protection of Competition ", Chelyabinsk OFAS Russia concluded that нарушение "ROSNO" OJSC won the tender by violating the proceedings for calculation of premium. The actions of "ROSNO" OJSC constitute unfair competition because such actions were aimed at obtaining advantages in exercising insurance business, and as a result insurance companies, that submitted their bids, were deprived of the possibility to bid on equal conditions with "ROSNO" OJSC. Such actions contravene the insurance legislation of the Russian Federation, usual and customary business practices, and ethical code, rule of reason and justness.

Having considered the case the antimonopoly office issued a determination to "ROSNO" OJSC requesting the company to stop the violations and to transfer to the federal budget the income in the amount of 103194 Rubles 02 kopecs (100 % of the contract value), obtained as a result of violating the proceedings for calculation of premium.

"ROSNO" OJSC filed a petition to the Chelyabinsk Regional Arbitration Court requesting it to recognize invalidity of the decision and determination issued by the Chelyabinsk OFAS Russia. The Court dismissed the claim. "ROSNO" OJSC disagreed with the judgment of the Arbitration Court and approached the Appellate Instance of the Arbitration Court.

The Appellate Instance, however, sustained the ruling of the Arbitration Court of the First Instance.

"ROSNO" OJSC did not appeal against the ruling of the Appellate Instance and transferred to the federal budget the income of 103194 Rubles 02 kopecs (100 % of the contract value) in accordance with the determination issued by the Antimonopoly Office.