OREANDA-NEWS. May 10, 2011. The Office of the Federal Antimonopoly Service in the Amur Region (Amur OFAS Russia) imposed a “turnover” fine upon “Amurskie Kommunalnie Sistemy” OJSC (“AKS” OJSC) – 10,093,970 Rubles for abusing market dominance for violating the antimonopoly law on the market of heat supply to apartment blocks, reported the press-centre of FAS Russia.

The penalty was imposed under Article 14.31 of the Code of the Russian Federation on Administrative Violations, which establishes liability for violating the antimonopoly law. In December 2010, the Commission of Amur OFAS Russia found that “AKS” OJSC violated Part 1 Article 10 of the Federal Law “On Protection of Competition” (abusing market dominance by economic entities) and issued a determination to eliminate the violation.

The antimonopoly case was initiated upon petitions of six companies involved in management of residential apartment blocks. “AKS” OJSC sent notifications to the managing companies that it would not resume supply of heat energy at the beginning of 2010-2011 heating season to the houses serviced by those companies due to financial indebtedness for earlier supplied electric power and due to absence of certificates confirming that the houses were prepared for the heating season.

“AKS” OJSC challenged the decision of the antimonopoly body, that the company violated the Federal Law “On Protection of Competition”, at Amur Regional Arbitration Court. However, on 25th April 2011 the Court confirmed validity and reasonableness of the decision issued by OFAS.

“Applying “turnover” fines for abusing market dominance is an important sanction that stimulate economic entities to comply with the antimonopoly law”, said the Head of Amur OFAS Russia, Alexander Degodiev.

Reference:

Under Article 14.31 of the Code of the Russian Federation on Administrative Violations, abusing market dominance is punished by “turnover” fines – from one hundredth to fifteen hundredths of the income of the violator from selling goods (works, services) on the market where the administrative violation was committed, but no more than one fiftieth of the total income of the violator from selling all goods (works, services) and no less than 100,000 Rubles.