FAS made a decision on a case against “Archangelsk TsBK”
The Federal Antimonopoly Service (FAS Russia) has not found any violations of the antimonopoly law in the actions of “Archangelsk TsBK” JSC. The company was suspected of fixing monopolistically high price for sulfated bleached pulp from softwood.
FAS has terminated the proceedings “Archangelsk TsBK” JSC opened upon elements of abusing dominance (Part 1 Article 10 of the Federal Law “On Protection of Competition”) due to absence of violations of the antimonopoly law.
Background: the antimonopoly investigation started upon the outcome of inspection of the largest producers of cellulose-and-paper products to verify whether their prices comply with the antimonopoly law. Grounds for opening the investigation – increased prices for softwood pulp in 2015.
Having studied additional materials as well as the arguments and explanations given by the parties, the FAS Commission concluded that that in 2015 a new player entered the market: “Mondi SLPK” JSC and actors’ market shares changed significantly. As a result, “Archangelsk TsBK” JSC lost its dominant position on the market of softwood pulp. Thus, at the moment, the norms of the Federal Law on competition protection do not apply to the company’s actions.
At the same time, Stats-Secretary, Deputy Head of FAS Andrey Tsarikovskiy pointed out that FAS shall carefully watch the situation on the market.
“Unreasonably growing prices in the cellulose-and-paper industry can for the grounds for a new investigation”, emphasized Mr. Tsarikovskiy.