OREANDA-NEWS. August 06, 2010. The Sverdlovsk OFAS Russia fined "Vodocanal-NT" Ltd. 2.5 million Rubles for committing an administrative violation, reported the press-centre of FAS Russia.

Earlier the Sverdlovsk OFAS Russia found that "Vodocanal-NT" Ltd. violated the antimonopoly law by terminating water supply services to the petitioner.

The Sverdlovsk OFAS Russia became aware that on 18-19 February 2010 "Vodocanal-NT" Ltd. stopped supplying water to facilities of "Khoztovary" Association" Ltd. because of the accumulated debt for the services rendered. The Commission of the Sverdlovsk OFAS Russia established that while water consumption is determined according to the reading of water meters, in addition to the earlier drawn up bills "Vodocanal-NT" Ltd. also charged the petitioner for supplying potable water in N-period, determining water consumption using the computational method (capacity of water mains and sewage).

Under an order of the Sverdlovsk OFAS Russia, "Vodocanal-NT" Ltd. is included in the Register of economic entities with over 35% share of the relevant market of dominant companies.

Under Clause 4 Part 1 Article 10 of the Federal Law "On Protection of Competition", an economic entity that has dominant market position cannot reduce or terminate production of the goods or services without economic or technological justification if there is demand for these goods.

"Vodocanal-NT" Ltd. violated the law on competition by stopping water supply to the facilities owned by "Khoztovary" Association" Ltd., which infringed the interests of the petitioner.

Taking into consideration the fact of voluntary elimination of the antimonopoly violation and its consequences, the Commission of the Sverdlovsk OFAS Russia closed the case against "Vodocanal-NT" Ltd.

However, Part 1 Article 37 of the Federal Law "On Protection of Competition" specifies that commercial and non-commercial organizations, which violated the antimonopoly law, are liable under the legislation of the Russian Federation.

Governed by Article 14.31 of the Code of Administrative Violations of the Russian Federation, OFAS made "Vodocanal-NT" Ltd. administrative liable and imposed a fine.

According to the Head of the Sverdlovsk OFAS Russia Tatiana Kolotova, such behavior of dominant market participants is unacceptable and will be suppressed by the antimonopoly body, because all disagreements and frictions should have been long resolved in a legitimate and civilized manner.