CASSATION COURT TOOK THE SIDE OF FAS IN A CASE ON AN ANTICOMPETITIVE AGREEMENT

“Gosstoizakaz” restricted competition in construction of outdoor utility networks for residential houses in Kyzyl

The Arbitration Court of the East-Siberian District supported the decision of Tyva OFAS that “Gosstoizakaz” State-Owned Institution of the Tyva Republic and “Energostroi” Ltd. had violated the norms of the antimonopoly law.

Tyva OFAS exposed a fact of violating the antimonopoly law by the above entities in the course of concluding a government contract for the works on constructing outdoor utility systems and providing public amenities to residential houses in Kyzyl. “Gosstoizakaz” and “Energostroi” Ltd. violated the law by starting the works upon the customer’s consent prior to announcing the bidding.

The case materials also corroborate that the initiative for entering into the anticompetitive agreement came from the government customer – “Gosstoizakaz” State-Owned Institution of the Tyva Republic, that made “Energostroi” Ltd. the winner, granting preferential conditions to the company for participating in procurement. The antimonopoly body arrived to the conclusion that the state-owned institution had violated the antimonopoly law because starting the works upon a customer’s consent under a government contract that had not been concluded yet restricts competition.

Court of First Instance, Arbitration Court and Cassation Court confirmed legitimacy of the decision made by Tyva OFAS.