FAS is verifying information about shortage of rail cars in the Kemerovo region

The Federal Antimonopoly Service is conducting an inspection due to information appeared in some mass media about shortage of railcars for coal transportation.

The antimonopoly body points out that “a shortage of gondola cars in the Kemerovo region, while in Russia in general a surplus of such types of rolling stock is observed, can be a sign of a serious violation of the antimonopoly law. FAS intends to verify the facts described in the mass media materials and should they be confirmed, to ascertain the reasons why shortage could have formed in the region”.

FAS reminds that Article 10 of the Federal Law “On Protection of Competition” prohibits an economic entity with the dominant position to undertake actions (omissions) that lead or can lead to preventing, restricting, eliminating competition (and) or infringing the interests of other persons in the field of business or consumers at large. Abusing dominance include, in particular, withdrawing goods from circulation if the result of such withdrawing is increased goods prices. Breaching this requirement leads to holding the violators administratively liable under Article 14.31 of the Code of the Russian Federation on Administrative Violations.

Article 11 of the Federal Law “On Protection of Competition” prohibits agreements between competitors of such agreements result or can result to fixing or maintaining prices, dividing the market in accord with the geographical principle, volume of goods sales or purchases, the range of goods or categories of sellers or buyers. Violating this norm leads to administrative (Article 14.32 of the Code on Administrative Violations) and criminal (Article 178 of the Criminal Code) liability for the violators.