Cassation Court supported FAS in a judicial dispute with “Minudobrenia” JSC
On 2 February 2017, the Arbitration Court of the Moscow District pronounced legitimacy and reasonableness of the decision of the Federal Antimonopoly Service (FAS Russia) not to open a case against “Transammiak” OJSCon the market of liquid ammonia transportation services.
In 2015 FAS received a complaint from “Minudobrenia” JSC against actions of “Transammiak” OJSC. According to the claimant, the company fixed a monopolistically high price for the service of liquid ammonia transportation, imposed disadvantageous contract conditions or conditions irrelevant to the contract subject, and prevented market entry.
Having analyzed the data, including an economic survey of cost effectiveness and the costs structure of ammonia transportation service, FAS reached conclusions that actions of “Transammiak” OJSC had no signs of violating the antimonopoly law under Clauses 1, 3 and 9 Part 1 Article 10 of the Federal Law “On Protection of Competition”.
“Minudobrenia” JSC, however, disagreed with the conclusions made by the Antimonopoly Service and filed a lawsuit to Moscow Arbitration Court to invalidate and abolish FAS decision.
Courts of three instances supported the FAS position and dismissed the claim of “Minudobrenia” JSC.
“Thus, Courts of three Instances confirmed the rightness of pricing analysis used by FAS to evaluate the rates set by local monopolies in pipeline transport”, emphasized Deputy Head of FAS Andrey Tsyganov.