Samara OFAS fined “SMT” Ltd. and “Medsimvol” Ltd. over 30 million RUB

Fines are imposed for anticompetitive bid-rigging agreements

Samara OFAS found that Modern Medical Technologies” Ltd.  (“SMT” Ltd.) and “Medsimvol” Ltd. committed administrative violations under Part 1 Article 14.32 of the Code of the Russian Federation on Administrative Violations, and fined the companies 26,338,000 RUB and 4,200,000 RUB accordingly.

Earlier Samara OFAS found that “SMT” Ltd. and “Medsimvol” Ltd. breached the Federal Law “On Protection of Competition”: concluding anticompetitive agreements.

Actions of “SMT” Ltd. fell under Clause 2 Part1 Article 11, Article 16 and Clause 1 Part 1 Article of the Federal Law “On Protection of Competition”. “Medsimvol” Ltd. violated Clause 2 Part 1 Article 11 of the Federal Law “On Protection of Competition”.

Liability for such violations is specified in Part 1 Article 14.32 of the Code on Administrative Violations.

Upon investigating the case on administrative violations, OFAS fined “SMT” Ltd. 26,338,640 RUB, and “Medsimvol” Ltd. 4,271,701 RUB.

In May 2016 there was an open auction in the Samara region for the works on maintenance and repair of expensive medical equipment.  Before the auctions, the Ministry of Health Care initiated a meeting between representatives of “SMT” Ltd. and “TSEKH – Zdorovie” Ltd., where a pattern of tender participation was plotted. It enabled “SMT” Ltd. to win, and “TSEKH – Zdorovie” Ltd. – to conclude a subcontract agreement for over 100 million RUB in exchange for non-participation in the auction and non-filing a complaint to FAS.

The arrangements between the Ministry and the companies also took place with involvement of a representative of the equipment manufacturer – “GI Healthcare” Ltd. and “Medsimvol” Ltd. and results in maintaining prices at the auction.

In its turn, the organizer – Seredavin Regional Clinical Hospital agreed upon the technical assignment with “SMT” Ltd. at the auction.