OREANDA-NEWS. November 18, 2013. The Commission of the Federal Antimonopoly Service (FAS Russia) found that the Authority of the “Obninsk Town” Municipality, the Kaluga Region, violated Part 1 Article 15 of the Federal Law “On Protection of Competition”.

The FAS Commission established that Obninsk Authority had grated subsidies to “Obninsk Passenger Motor Transport” Municipal Enterprise for compensating the costs of regular passenger transportation in Obninsk.

According to the information received by FAS, several dozens economic entities provide passenger transportation services in Obninsk. The FAS Commission revealed that actions of the Authority deprived them of a possibility to obtain subsidies.

“Municipal authorities must create equal conditions for companies of any type of ownership. Subsidizing exclusively subordinate municipal enterprises restricts competition and will be suppressed by the antimonopoly bodies”, pointed out the Head of FAS Department for Control over the Authorities, Vladimir Mishelovin.

Reference:

Part 1 Article 15 of the Federal Law “On Protection of Competition” prohibits local self-government bodies 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) specified in the federal laws.