FAS suppressed a bid-rigging cartel at auction organized by the Ministry of Defence

On 22 May 2017, FAS found that “Bely Medved” Ltd., “Corelclean” Ltd., “Millenium  Clean” Ltd. and a group of persons comprising “Component” Ltd., “Ecobalt” Ltd., “RusComplex” Ltd., “Spetsresource” Ltd., “Megaline” Ltd. violated the antimonopoly law (Clause 2 Part 1 Article 11 of No. 135-FZ Federal Law “On Protection of Competition” of 26.07.2006).

FAS found that the companies entered into an anticompetitive agreement at auctions held by the Ministry of Defence * and took part in it, which resulted in maintaining prices at auctions. The initial maximum price decreased by no more than 1.5% at all auctions.

The fine upon companies involved in the cartel will be imposed later in the course of investigating the administrative case.

Head of FAS Anti-Cartel Department Andrey Tenishev stated: “FAS exposed a cartel at 8 open auctions of the Ministry of Defence; the total sum of the initial maximum contract price was 1,798,601,183.38 RUB. Refusal form competition between bidders of such auctions leads to inefficient spending of budgetary funds”.

“Under the frame of the administrative case, we will account for the fact that one of the companies acknowledged its guilt: voluntarily reported information to the antimonopoly body on concluding and participating in the anticompetitive agreement and refusing to further participate in it “, clarified Deputy Head of FAS Alexei Dotsenko.

FAS also terminated proceedings on the case against “Ars-Service” Ltd., “Prometei” Ltd., “Enzhcleanservice” Ltd, “ASP” Ltd.  due to lack of evidence of their participation in the cartel.

*In May-June 2015 the Ministry of Defence organized several open auctions for the services of sanitary maintenance, technical and integrated servicing of barracks and quarters of garrison towns, holdings of universities and other institutions subordinate to the Ministry.