FAS revealed elements of violating the antimonopoly law on the market of solid-rolled railway wheels
The Federal Antimonopoly Service (FAS Russia) opened a case against “EVRAZ NTMK” OJSC upon elements of violating the Federal Law “On Protection of Competition” (Clause 1 Part 1 Article 10).
The Antimonopoly Service analyzed the market of solid-rolled railway wheels for locomotives. FAS found that “EVRAZ NTMK” OJSC is a monopolist in the Russian Federation on the market of 1058-202-2 wheels (solid-rolled wheels, 1058 mm diameter, and the inner diameter of nave holes - 202 mm).
This type of products is manufactured on the same equipment and from the same raw materials as 957-175-2 wheels (solid-rolled wheels, 957 mm diameter, and the inner diameter of nave holes - 175 mm) and 957-190-2 wheels (solid-rolled wheels, 957 mm diameter, the inner diameter of nave holes - 190 mm). The production costs also are not significantly different.
At the same time, prices for 1058-202-2 wheels were 1.3 times higher than the prices for 957-175-2 and 957-190-2 wheels that formed in competition with “Vyksunsky Metallurgical Works” OJSC and imported products.
Thus, FAS suspects that “EVRAZ NTMK” OJSC fixed monopolistically high prices for a particular type of wheels.