The Court ruled that “IKS” Ltd. and the Authority of the Gvardeisky City District are guilty of bid-rigging
On 7 September 2016, the Federal Arbitration Court of the North-Western District drew a line in a case against “Information Corporate Service” Ltd. and the Authority of the “Gvardeisky City District” Municipalityfor violatingArticle 16 the Federal Law “On Protection of Competition” confirming the rightness of Kaliningrad OFAS.
Earlier Kaliningrad Regional Arbitration Court and the 13th Arbitration Appeal Court supported the position of the antimonopoly body.
On 9 July 2015, the antimonopoly body made a decision that the economic entity and the government body violated Article 16 the Federal Law “On Protection of Competition”.
In the course of the investigation Kaliningrad OFAS established that the Authority of the “Gvardeisky City District” Municipality and “Information Corporate Service” Ltd. had reached arrangements to organize an electronic open auction for the capital repair works of a building of a multi-functional centre for state and municipal services for the population residing in “Gvardeisky District” Municipality in Gvardeisk, the Kaliningrad region (assembly and adjustment works with lower power networks) to create favourable conditions for a particular contractor. As a result, “IKS” Ltd. became the auction winner.
The Authority of the Gvardeisky City Districtdisagreed with the decision of the antimonopoly bodyand filed a lawsuit.
“The Court ruling of the 7th September drew a line in the case. It is important that on 30 June 2016 “IKS” Ltd. was fined 2.5 million RUB for violating the antimonopoly law. Top executives of both the economic entity and the Authority of the Gvardeisky City District must pay 20,000 RUB fines”, added the Head of Kaliningrad OFAS, Olga Bobrova.