OREANDA-NEWS. March 21, 2012. The Federal Arbitration Court of the North-Caucasus District confirmed the fact of collusion between “Zvezda-Strela” Trading House” Ltd. and “Don-Stroi” Ltd. aimed at maintaining prices at a tender for buying housing for migrants, reported the press-centre of FAS Russia.

The Office of the Federal Antimonopoly Service in the Rostov Region (Rostov OFAS Russia) initiated a case on the basis of information forwarded from Taganrog Prosecutor’s Office about the results of an open auction for the right to conclude a municipal contract for buying premises for Taganrog municipal property from residential housing developers in order to provide housing to the residents moved from failing housing stock.

It was planned to sell 33 lots at the auction. However, only two lots (No. 14 and 15) were put at the auction. Other lots were either allocated to the single bidder, or not bids were filed at all.

For instance, “Zvezda-Strela” Trading House” Ltd. and “Don-Stroi” Ltd. were recognized as bidders for Nos. 14 and 15 lots. In reality, however, the auction did not take place. “Zvezda-Strela” Trading House” Ltd. filed a bid for No.14 lot, reducing the price by 0.5%. “Don-Stroi” Ltd. did not put forward any bids. No.15 lot was arranged in the inverse manner: “Don-Stroi” Ltd. filed a bid, reducing the price by 0.5%. “Zvezda-Strela” Trading House” Ltd. did not file any price bids.

Rostov OFAS Russia found that “Zvezda-Strela” Trading House” Ltd. and “Don-Stroi” Ltd. violated Clause 2 Part 1 Article 11 of the Federal Law “On Protection of Competition” and fined each violator 100,000 Rubles.

“Every time it is a huge victory, when Courts recognize legitimacy of our decisions about collusions in any activities of economic entities. Rarely cartel agreements are formalized on paper, or, even more, are corroborated by witnesses or participants of such agreements. More often the antimonopoly body makes conclusions about a cartel agreement in the absence of direct evidence, evaluating only the indirect ones. It is not easy to prove a fact of collusion at Court; therefore, every case won by the antimonopoly body is important for the enforcement practice”, commented the Head of Rostov OFAS Russia, Vadim Korneev.