OREANDA-NEWS. October 27, 2010. The Federal Arbitration Court of the Urals District confirmed legitimacy of the decision made by Chelyabinsk Office of the Federal Antimonopoly Service (OFAS Russia) regarding “ChelyabSG-Trans” Ltd., “YuzhUralSG-Trans” Ltd., “Avtocont” Ltd., “Kembrii” Ltd., and “OPTAN- Chelyabinsk” Ltd. In April 2009 the companies simultaneously increased retail prices for liquefied petrol gas (LPG) in breach of the antimonopoly law, reported the press-centre of FAS Russia.

The owners of NVG-refueling compressor stations in Chelyabinsk and the Chelyabinsk region increased LPG prices up to 8 Rubles per liter, which constituted over 20% increase in comparison with the previous price level.

Prices monitoring by the antimonopoly body showed that the absence of objective reasons that could have resulted in simultaneous price increase by the companies. Retail LPG prices were the same within the accuracy of a kopeck, which could not be a coincidence under different conditions and forms of operations.

Investigating the case, Chelyabinsk OFAS Russia established that the companies selling gas at NVG-refueling stations exercised concerted pricing policy.

Clause 1 Part 1 Article 11 of the Federal Law “On Protection of Competition” prohibits agreements or concerted actions between economic entities if such agreements or concerted actions lead or can lead to fixing or maintaining prices (tariffs), discounts, mark-ups, surcharges.

Upon completing the investigation, Chelyabinsk OFAS Russia found that the companies violated the law by exercising prohibited concerted actions.

“ChelyabSG-Trans” Ltd., “YuzhUralSG-Trans” Ltd., “Avtocont” Ltd., “Kembrii” Ltd., and “OPTAN- Chelyabinsk” Ltd. challenged the decision of the antimonopoly body at courts of law.

Legitimacy and reasonableness of the decision made by Chelyabinsk OFAS Russia was confirmed by Chelyabinsk Regional Arbitration Court on 9th April 2010 and by the 18th Arbitration Appeal Court on 17th August 2010.

According to the Head of Chelyabinsk OFAS Russia, Ms Anna Kozlova, the companies were engaged in synchronous operations because every company that was first to increase its retail prices did not risk to lose its customers. The company understood that other market participants will follow it and increase their prices. Pursuing the goal of gaining maximum profit and avoiding losses, the companies did not wish to lag behind other gas sellers and so they fixed exactly the same prices. Further on, concerted actions between market participants could restrict competition on the retail market of liquefied petrol gas.