OREANDA-NEWS. May 12, 2012. The Commission of the Federal Antimonopoly Service (FAS Russia) found that the Social Security Fund of the Russian Federation (the Fund) violated Clause 5 Part 1 Article 15 of the Federal Law “On Protection of Competition”, reported the press-centre of FAS Russia.    

The subject matter of the case were the provisions of the Tentative Procedures for assigning and paying social benefits (the Tentative Procedures), approved by a Fund Order in 2000.

According to the Order and the form of applications, approved by the Order, that physical persons must fill in to receive social benefits, the general public can only use services of credit organizations and organizations of the federal postal service to receive the benefits.

The FAS Commission established that social benefits can be obtained by other methods, apart from transfers to accounts in credit organizations and postal remittances.

In particular, the federal law regarding other social benefits, provided by the Fund, specifies such option for the general public.

Information on the case file shows that a regional branch of the Fund paid insurance benefits to more than 3000 members of the general public through organizations not specified in the Tentative Procedures.

FAS has conducted a survey of organizations delivering work pensions to members of the general public and has discovered that such organizations are interested in providing services for delivering social benefits to members of general public and approached regional branches of the Fund with such proposals.

The case against the Fund was separated upon the FAS Commission investigating another case. The latter case concerned the Fund and its 37 regional branches sending letter about changing a method of receiving social benefits by members of general public.

In course of investigating the previous case, the Fund voluntarily eliminated the antimonopoly violation by sending a letter to its regional branches with instructions to explain to the general public their right to choose not only banks or post office, but other organizations to receive their social benefits.

The Fund also recommended its regional branches to use a form of applications for social benefits, which would enable members of the general public to exercise this right.

At the same time, the case materials show that in spite of all recommendations some of the Fund branches still keep using the form for application for social benefits approved by the Tentative Procedures.

The FAS Commission concluded that by not introducing changes to the Tentative Procedures that would enable members of the general public to choose not only a credit organization or organizations of federal postal service but also any other organization to receive social benefits, the Fund violated Clause 5 Part 1 Article 15 of the Federal Law “On Protection of Competition”.

FAS issued a determination to the Fund to stop violating the antimonopoly law and to exercise actions towards protecting competition.

In particular, the Fund must introduce relevant changes to the Tentative Procedures and exercise certain actions aimed at increasing awareness of members of the general public regarding their rights to receive social benefits not only through credit organizations and organizations of federal postal service, but also through other organizations if members of general public wish to use their services.

“The payment market is actively developing – new methods of payment are emerging, modern technologies are implementing, the law is improving. Unfortunately, however, restricting consumers in their choice of particular methods of payment and receiving monetary funds still remains one of the main factors restraining its prospective development. In our opinion, properly creating awareness of the general public regarding payment services and possibility to use them must facilitate resolving the issue. It is for this reason FAS included a number of relevant provisions in the determination issued to the Fund”, said Deputy Head of FAS Andrey Kashevarov.

Reference:

Clause 5 Part 1 Article 15 of the Federal Law “On Protection of Competition” prohibits state extra-budgetary funds to pass acts and (or) exercise actions (omissions) that lead or can lead to preventing, restricting, eliminating competition, except cases of passing acts and (or) exercising such actions (omissions) provided for by the federal laws, in particular, it is prohibited to restrict buyers of the goods in their choice of economic entities providing such goods.