OREANDA-NEWS. October 05, 2010. The Commission of the Novosibirsk Office of the Federal Antimonopoly Service (FAS Russia) considered a second case against large milk producers. This time the sighs of antimonopoly violations were discovered in the actions of “UNIMILK” Company OJSC (in the person of its branch “Novosibisrky” Milk Plant”) and “Unimilk” Ltd. (in the person of its branch “UniMIlk – Novosibirsk”). The companies unreasonably increased milk prices, which infirmed the buyers’ interests and violated Part 1 Article 10 of the Federal Law “On Protection of Competition”, reported the press-centre of FAS Russia.

According to the respondents: “prices for milk with 2.5% fat content increased due to growth of prices for milk raw materials, the share of which in the milk price is over 50%, and excessive loss ratio for production of this type of product”.

Through weekly [rice monitoring carried out by the antimonopoly body, Novosibirsk OFAS Russia established that milk prices for brand “Dlya Vsei Semyi” increased by over 13 %, and for the “Letny Den” brand – by over 20%. At the same time prices for milk raw materials increased only by 8% in January – August 2010.

The Commission of Novosibirsk OFAS Russia issued a determination to the companies to adjust ex-works milk prices.

The case file will be transferred to a responsible officer of Novosibirsk OFAS Russia to consider initiating administrative proceedings against the violators.

“Under the Code of the Russian Federation on Administrative Violations sanctions for such violations are fines from one hundredth to fifteen hundredths of the income for sale of goods in the previous calendar year”, pointed out Deputy Head of Novosibirsk OFAS Russia Alexander Yelchaninov.

Reference:
Part 1 Article 10 of the Federal Law “On Protection of Competition” prohibits actions of a dominant economic entity on the market that lead or can lead to restricting or preventing competition and infringing the interests of other persons.