OREANDA-NEWS. May 12, 2011. The Federal Antimonopoly Service (FAS Russia) initiated a case against “Sverdlov Works” Federal Budget-Supported Enterprise, “Promsynthez” OJSC and “T.O.R.” CJSC upon the signs of violating Clause 1 Part 1 Article 11 of the Federal Law “On Protection of Competition”. The companies simultaneously increased prices for industrial explosives supplied by them, reported the press-centre of FAS Russia.

The case was initiated upon a complaint of “Lebedinsky Mining and Processing Plant” (LGOK) OJSC about actions of manufacturers.

Investigating the complaint, FAS Russia concluded that manufacturers simultaneously fixed the same or similar prices for industrial explosives – granutolol, grammonite 79/21, cartridged ammonite 6ZhV d=32 mm, which can be the signs of concerted actions.

On 21st January 2010, FAS Russia found that “Perm Power Works” Federal Budget-Supported Enterprise, “Kalinov Chemical Works” OJSC, “Sverdlov Works” Federal Budget-Supported Enterprise, “Promsynthez” OJSC, “Bryansk Chemical Works” Federal State Unitary Enterprise and “Plastics Works” Federal State Unitary Enterprise violated Part 1 Article 11 of the Federal Law “On Protection of Competition”, and “Rusperforator” Research and Production Enterprise” CJSC violated Part 3 Article 11 of the Federal Law “On Protection of Competition” by exercising concerted actions on the market that resulted in manufacturers fixing the same prices for industrial explosives.

The case is scheduled for 30th May 2011.

Reference:

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

2. Under Article 14.32 of the Code of the Russian Federation on Administrative Violations, for participation in concerted actions a violator can be fined 1 - 15% of the company’s turnover on the market where the violation was committed;

3. Under Article 178 of the Criminal Code of the Russian Federation, preventing, restricting or eliminating competition by entering into competition-restricting agreements or exercising competition-restricting concerted actions, repeatedly abusing market dominance, by fixing and (or) maintaining monopolistically high prices or monopolistically low prices, unreasonably refusing to conclude a contract, restricting market entry, if such conduct caused heavy damage to citizens, organisations or the state or resulted in gaining income in large scale, are punished by a fine from 300,000 to 500,000 Rubles or in the amount of salary or other income of the convicted person within the period from one to two years, or imprisonment for up to three year with divesting of the right to hold certain positions or be engaged in certain activities for a period up to a year, or without such deforcement.