Dzerzhinsky water supply and waste water treatment plant shall pay over 11 million RUB

Cassation Court supported a decision of Nizhniy Novgorod OFAS to fine “Dzerzhinsky Vodokanal” OJSC [water supply and waste water treatment plant].

On 16 August 2016, the Arbitration Court of the Volga-Vyatka District considered a cassation appeal of “Dzerzhinsky Vodokanal” OJSC on the judgment of the Arbitration Court of the Nizhniy Novgorod Region and the ruling of the First Arbitration Appeal Court on the case against the water supply and waste water treatment plant.

The Arbitration Court of the Volga-Vyatka District ruled to uphold the acts passed by the Arbitration Court of the Nizhniy Novgorod Region and the First Arbitration Appeal Court on the case.

Having investigated the materials of the case on the administrative violation under Part 2 Article 14.31 of the Code of the Russian Federation on Administrative Violations against “Dzerzhinsky Vodokanal” OJSC, the antimonopoly body fined the violator 11,482,978.62 RUB.

In 2014 the Office of the Federal Antimonopoly Service in the Nizhniy Novgorod region (Nizhniy Novgorod OFAS Russia) received a complaint from “Khimvest” Ltd. regarding unilateral termination of a water supply contract and waste water collection by “Dzerzhinsky Vodokanal” OJSC and imposing a contract with “Tsvet” TD” Ltd.

Nizhniy Novgorod OFAS considered such actions as abusing dominance and violating Part 1 Article 10 of the Federal Law “On Protection of Competition”. Upon breaching the prohibition set by the antimonopoly law, the natural monopoly was held administratively liable under Part 2 Article 14.31 of the Code on Administrative Violations. As a consequence, the antimonopoly body initiated administrative proceedings against “Dzerzhinsky Vodokanal” OJSC and imposed the fine.