OREANDA-NEWS. May 06, 2014. The Federal Antimonopoly Service (FAS Russia) fined participants of a cartel aimed at maintaining prices at the auctions for supplying rehabilitation means to the disabled (in total - 7 million RUB).

In particular, FAS imposed fines upon “Aprel” Ltd., “Regional Centre for Rehabilitation Means” Ltd., “Bashkiria Centre for Rehabilitation Means” Ltd.

In November 2013, FAS found that “Regional Centre for Rehabilitation Means” Ltd., “Medexpress” Ltd. (previously “DYUNA” Ltd.), “Aprel” Ltd., “Predgorie Kavkaza” Trading House” Ltd., “Region Logistic” Ltd., “Bashkiria Centre for Rehabilitation Means” Ltd. and an individual entrepreneur E. Ulanovskaya violated the Federal Law “On Protection of Competition” (Clause 2 Part 1 Article 11) by concluding and participating in an anticompetitive agreement (cartel) aimed at maintaining prices at auctions. Actions of cartel participants at the auctions helped “Regional Centre for Rehabilitation Means” Ltd. to win with the minimum reduction of the initial price of the government contract.

According to the information available to FAS, the agreement was implemented at least at five open electronic auctions for supplying technical rehabilitation means for the disabled in the Krasnodar region and the Perm region.

Participants to the agreement pursued a conduct strategy at the auctions as a result of which bona fide participants were artificially debarred from taking part in the auctions, competition was restricted, and the state did not get the expected saving of budgetary funds.

“In the near future FAS shall impose administrative fines upon other cartel participants”, summed up the Head of FAS Anti-Cartel Department, Andrey Tenischev.

Reference:

1. Under Clause 2 Part 1 Article 11 of No.135-FZ Federal Law “On Protection of Competition” of 26.07.2006, agreements between competitors – economic entities that sell goods on the same market are recognized as a cartel and are prohibited if such agreements lead or can lead to increasing, decreasing or maintaining prices at auctions.