COURT CONFIRMED LEGITIMACY OF FAS FINE UPON “MOEK” PJSC

FAS fined the company 737,500 RUB for violating the antimonopoly law

Moscow Arbitration Court pronounced legitimacy of FAS order to fine “MOEK” PJSC.

As a background: the Antimonopoly Service received a complaint from “MPRTs Zdorovie” - a branch of “Moscow Prosthetics and Orthopedic Enterprise” of the Ministry of Labour of the Russian Federation  about actions undertaken by the company.

The Antimonopoly Service opened proceedings against “MOEK” PJSC and found that a heat supply contract had been concluded between the organization and the enterprise. Under the contract, the amount of supplied heating energy and heat carrier is determined according to heating meter reading, which is fully in line with the regulatory acts issued by the Government of the Russian Federation.

“MOEK” PJSC, however, determined the amount of heating energy by calculations, which increased the volume of the consumed energy by several times, and as a consequence, affected the heating costs.

Such actions of the entity increase financial obligations of the claimant considerably.

Having considered the case on violating the antimonopoly law, the FAS Commission found that “MOEK” PJSC had breached Clause 10 Part 1 Article 10 of the Federal Law “On Protection of Competition”. Liability for the violation is specified in Part 1 Article 14.31 of the Code of Administrative Violations on the Russian Federation.

FAS imposed a 737,500 RUB fine. The company appealed it at Moscow Arbitration Court, which, however, dismissed the claim and confirmed the rightness of FAS position.

Head of FAS Department for Regulating the Housing & Utility Complex, Alexei Matyukhin pointed out: “It is worth noting that in May 2019 Cassation Court confirmed legitimacy of the decision and order made by the antimonopoly authority that “MOEK” PJSC abused its dominance”.

Background:

“MOEK” PJSC is an economic entity that has the dominant position on the market of heat supply services in Moscow.