Appeal Court confirmed legitimacy of FAS warning issued to “Novorossiysk Bread Products Works”

08-06-2017 | 05:15

On 1 June 2017, the 9th Arbitration Appeal Court confirmed legitimacy and reasonableness of the warning issued by the Federal Antimonopoly Service to “Novorossiysk Bread Products Works” PJSC upon exposing signs of violating the antimonopoly law on the market of grain transshipment services

On 31 October 2016, FAS issued a warning to “NovorossiyskBread Products WorksPJSC to stop actions (omissions) that have signs of violating the antimonopoly law. It concerned unreasonable refusals or avoiding approvals of requests - GU-12 form (requests for cargo transportation) filed by “Tachnotrans” Ltd. In the opinion of the antimonopoly body, actions of “NovorossiyskBread Products WorksPJSC could have resulted in discriminatory conditions to particular transport companies. FAS wanted “NovorossiyskBread Products WorksPJSC to eliminate signs of the violation, draft a document to provide non-discriminatory procedure for considering GU-12 requests and publish information on the results of fulfilling requests on its web-site. The company disagreed with FAS arguments and filed a lawsuit.

Representatives of the antimonopoly body were able to prove at the Court of First Instance and the Appeal Court that “NovorossiyskBread Products WorksPJSC, in spite of technological possibilities for rendering grain transshipment services, unreasonably breached the deadlines for considering requests of “Tachnotrans” Ltd. and some other economic entities, giving priority to fulfilling requests of the largest counteragent (regardless of the sequence of filing the requests). Therefore, actions of the stevedore have signs of abusing dominance: creating discriminatory conditions on the market of grain transshipment services.

Earlier Moscow Arbitration Court pronounced legitimacy of similar warning issued by “Novorossiysk Grain Terminal” JSC and “Tuapse Commercial Seaport” JSC.

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