OREANDA-NEWS. May 06, 2013. The 13th Arbitration Appeal Court confirmed legitimacy of a determination of the Office of the Federal Antimonopoly Service in the Leningrad Region (Leningrad OFAS Russia) to impose a turnover fine upon “Lenenergo” OJCS (6.8 million Rubles).

The network organization was fined for violating the antimonopoly law: “Lenenergo” OJCS was forcing residents of Gatchina District, the Leningrad Region, to enter into a contract for connecting to electricity networks, under which the applicants were supposed to design and assemble wooden support structures at the boundaries of their land plots at their own expense. This requirement was included in five editions of the contract (in breach of Clause 3 Part 1 Article 10 of the Federal Law “On Protection of Competition”).

“Lenenergo” OJCS also breached the deadlines for considering applications. For instance, the company was considering one application for six months instead of the statutory 30 days. Leningrad OFAS Russia established that such actions of the monopolist had imposed disadvantageous contract conditions and infringed the interests of the applicants.

В конце 2012 “Lenenergo” OJCS paid the fine at the end of 2012 but at the same time challenged the determination of the antimonopoly body at the Arbitration Court. The Court of First Instance reduced the fine 100,000 Rubles.

Leningrad OFAS Russia appealed and the Appeal Court confirmed legitimacy of the fine imposed by Leningrad OFAS Russia.

Reference:

Article 14.31 of the Code of the Russian Federation on Administrative Violations imposed administrative liability in the form of an administrative fine upon legal entities from 1% to 15% of the annual company turnover in the relevant market.