Moscow OFAS exposed a cartel at 45 auctions for public establishments

Moscow OFAS exposed a cartel between “ARDO Inzhstroi” Ltd. and “CONDOR” Ltd. throughout 45 auctions for capital and current repair in various public and municipal establishments in total for over 140 million RUB.

The regulator recognized that “ARDO Inzhstroi” Ltd. and “CONDOR” Ltd. breached the prohibition of competition-restricting agreements (Clause 2 Part 1 Article 11 of the Federal Law “On Protection of Competition”).

Moscow OFAS concluded that at electronic auctions “ARDO Inzhstroi” Ltd. and “CONDOR” Ltd. acted in the interests of each other which led to maintaining the auction prices.  The initial contract prices were reduced from 0% to 5%.

The ordering parties were “Moscow City Department for Control over designated Natural Areas” State Public Budgetary Establishment, district units of “Zhikischnik” State Budgetary Establishment, “Directorate of Mospriridy” Moscow State Public Institution, the Main Department for the Ministry of Emergencies in Moscow and other public and municipal bodies.

Head of Moscow OFAS Armen Khanyan stated: “As a result of collusion “ARDO Inzhstroi” won 25 auctions and entered into contracts for the total sum - nearly 93 million RUB, while “CONDOR” won 20 auctions and got contracts in total for around 45.5 million RUB. The vioaltors will be held administratively liable in the near future and fines can reach up to 50% of the original maximum value of the auction subject”.