OREANDA-NEWS. February 25, 2011. The Federal Antimonopoly Service (FAS Russia) found that Ufa City Authority, the Republic of Bashkortostan, violated Parts 1 and 3 Article 15 of the Federal Law “On Protection of Competition”, reported the press-centre of FAS Russia.

Breaching Parts 1 and 3 Article 15 of the Federal Law “On Protection of Competition”, Ufa City Authority assigned the functions of a local self-government body to a municipal unitary enterprise – “Specialised Service Works”, of Ufa, the Republic of Bashkortostan, and later to its legal successor - the “Specialised Service Works” Municipal Institution of Ufa, the Republic of Bashkortostan, which led to competition restrictions.

These organisations are involved in income - generating entrepreneurial activities. At the same time, Ufa City Authority assigned the functions for organisation of burial services, maintaining burial sites and improving city cemeteries to these economic entities. Ufa City Authority also leased plots of land to these economic entities for continuous (unlimited) use (category – urban lands occupied by cemeteries).

The FAS Russia’s Commission established that such actions of Ufa City Authority unreasonably prevented activities of economic entities on the market of burial services.

Having investigated the case, FAS Russia found that Ufa City Authority violated the antimonopoly law and issued a determination to stop the violation.

The FAS Russia’s Commission discovered the signs of violating Part 1 Article 15 of the Federal Law “On Protection of Competition” by Ufa City Legislature, the Republic of Bashkortostan. It adopted the act, which lead or can lead to preventing, restricting or eliminating competition on the market of burial (ceremonial) services. The FAS Russia’s Commission initiated separate antimonopoly proceedings making Ufa City Legislature the respondent to the case.

Reference:

1. Part 1 Article 15 of the Federal Law “On Protection of Competition” prohibits federal executive bodies, the authorities of the constituent territories of the Russian Federation, local self-government bodies, others bodies and organisations exercising the functions of these bodies, as well as extra-budgetary funds and the Central Bank of the Russian Federation to pass acts and (or) exercise actions (omissions) which lead or can lead to preventing, restricting or eliminating competition.

2. Part 3 Article 15 of the Federal Law “On Protection of Competition” prohibits combining the functions of federal executive bodies, the authorities of the constituent territories of the Russian Federation, other power bodies, local self-government bodies with the functions of economic entities, except when provided for by the federal laws, the Orders of the President of the Russian Federation, the Decrees of the Government of the Russian Federation, and prohibits assigning the functions and the rights of the above bodies to economic entities, including the functions and the rights of state supervisory bodies, unless otherwise provided for by the Federal Law “On “Rosatom” State Nuclear Power Corporation”.