OREANDA-NEWS. June 18, 2012. The Federal Arbitration Court of the Moscow District confirmed legitimacy of the administrative fine (over seven million Rubles) imposed by FAS upon KRK-Strakhovanie Ltd. for concluding and taking part in anticompetitive agreements on the market of comprehensive and collusion car insurance, reported the press-centre of FAS Russia.   

The Federal Arbitration Court of the Moscow District dismissed the claim of KRK-Strakhovanie Ltd. to abolish the judgment of Moscow Arbitration Court of 9 th November 2011 and the ruling of the 9 th Arbitration Appeal Court in Moscow of 20th February 2012 and to issue a new judicial act invalidating FAS determination to hold KRK-Strakhovanie Ltd. administratively liable. FAS imposed an administrative fine (7,668,960 Rubles) upon the violator under Article 14.32 of the Code of the Russian Federation on Administrative Violations.

Earlier FAS established that KRK-Strakhovanie Ltd. violated the law by concluding and taking part in anticompetitive agreements that resulted (could have resulted) in fixing and maintaining prices (tariffs) for vehicle insurance for the physical persons the clients of KRK CJSC and KRK Commercial Bank OJSC. The law was also violated by concluding and taking part in the agreements that resulted (could have resulted) in imposing disadvantageous insurance contract conditions upon clients of KRK CJSC and KRK Commercial Bank OJSC, in the part of establishing a fixed insurance tariff for the second and subsequent years of vehicle insurance at 9.99%.

Reference:

1. In 2010, FAS exposed price collusion on the market of vehicle insurance between the KRK group of persons, comprising Retail Crediting Company CJSC, KRK-Strakhovanie Ltd. and KRK Commercial Bank OJSC, as well as six insurance companies: AlphaStrakhovanie OJSC, MSK Insurance Group OJSC, Rosgosstrakh Ltd., Admiral Insurance Group Ltd., Renaissance Insurance Group Ltd. and Russkaya Insurance Company OJSC.

Having investigated the case on violating the antimonopoly law, FAS found that the companies violated Part 1 Article 11 of the Federal Law On Protection of Competition.

Upon the fact of violating the antimonopoly law, FAS opened administrative cases against the KRK group of persons and insurance companies. As a result, FAS imposed turnover fined upon participants of the price collusion for the total sum over 115 million Rubles.

2. Article 14.32. Concluding a competition-restricting agreement, exercising competition-restricting concerted actions, coordinating economic activities

1. Concluding an agreement, prohibited by the antimonopoly law of the Russian Federation, by an economic entity, as well as taking part in it, or exercising concerted actions, prohibited by the antimonopoly law of the Russian Federation, by an economic entity, are punishable by an administrative fine upon officials from 20,000 to 50,000 Rubles, or disqualification for the period of up to three years; for legal entities from one hundredths 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 less than 100,000 Rubles, and if the income of the violator from selling goods (works, services) on the market where the administrative violation was committed exceeds 75% of the total income of the violator from selling all goods (works, services) from three thousandths to three hundredths of the income of the violator from selling goods (works, services) on the market where the administrative violation was committed, but no less than 100,000 Rubles.