OREANDA-NEWS. July 21, 2008. The Federal Antimonopoly Service (FAS Russia) has initiated a case against the "Izhevsk Mechanical Works" (IMZ) Federal State Unitary Enterprise and "Izhevsky Arsenal" Ltd. for breaching Part 2 Article 11 of the Federal Law "On Protection of Competition", reported the press-centre of FAS Russia.

The case has been initiated upon a petition of "Cornet" Ltd.

"Izhevsk Mechanical Works" and "Izhevsky Arsenal" Ltd. have allegedly violated the antimonopoly legislation by entering into an agreement that has resulted in restricting competition on the market of wholesale trading with sport and hunting weapons.

The share of sales by "Izhevsk Mechanical Works" on the Russian market of sport and hunting weapons (inclusive of import) is around 50%. "Izhevsk Mechanical Works" is included in the Regional Register of economic entities with over 35% share of the goods market, category - sport and hunting weapons.

"Izhevsky Arsenal" Ltd. is the sole representative of "Izhevsk Mechanical Works" for selling sport and hunting weapons.

"Using the so-called exclusive distributors (or, to put is more simply, the only seller) - is a widespread and common business practice. However, when the manufacturer dominates the market, such actions are in breach of the antimonopoly legislation" - said Andrei Tsyganov, Deputy Head of FAS Russia.

The case will be processed at the beginning of September.