Moscow Arbitration Court supported FAS position in a case on a bid-rigging cartel for reconstructing Krasnoyarsk Regional Oncology Clinic

Moscow Arbitration Courtpronounced legitimacy and reasonableness ofthe decision of the Federal Antimonopoly Service (FAS Russia) on a case against “Medkon” Ltd., “Sibagropromstroi” Shareholding Company, “UNIX” Medical Company” Ltd., “Monolitstroi” Ltd. and fully supported the arguments and submissions from the antimonopoly authority.

In June 2015 FAS found that “Medkon” Ltd., “Sibagropromstroi” Shareholding Company, “UNIX” Medical Company” Ltd., “Monolitstroi” Ltd. violated Clause 2  Part 1 Article 11 of the Federal Law “On Protection of Competition”. FAS established that the companies concluded an anticompetitive agreement to maintain prices at an open auction for the works to reconstruct Krasnoyarsk Regional Oncology Clinic. To this purpose, two participants of the prohibited agreement acquired 50% shares of a third organization each and determined a model of conduct for this organization at the tender. When the tender was over they subcontracted some of the works under the government contract to their competitors.

“For the first time in judicial practice on bid-rigging cartels the Court recognized legitimacy of holding liable not only the bidders but also the companies that used an operating company to implement the anticompetitive agreement”, pointed out the Head of FAS Anti-Cartel Department, Andrey Filimonov.

“The Court confirmed FAS conclusions on the anticompetitive agreement in the course of the tender and execution of the government contract. All participants of the agreement are held administratively liable”, said the Head of FAS Anti-Cartel Department, Andrey Tenischev. “In its turn, FAS will continue its efforts on exposing cartels in construction”.