First cases are opened for fixing and maintaining monopolistically high prices for food products in the airports in the near-Moscow area

Moscow Regional OFAS focuses attention on “Burger King” fast food chain, “Shokoladnitsa” coffee-shop chain and “Mu-Mu” cafeteria chain

MoscowRegionalOFASopened a case against “Burger Rus Ltd. (“Burger King” fast food chain), “Galereya-ALEX” Ltd. (“Shokoladnitsa” coffee-shopchain) and “Master Franchising Group” Ltd. (“Mu-Mu” cafeteria chain) upon signs of abusing dominance on the market of retail trade with food products and public catering services in airports: fixing and maintaining monopolistically high prices for food products (Clause 1 Part 1 Article 10 of the Federal Law “On Protection of Competition”).

The antimonopoly cases were opened upon petitions from individuals on the high costs of goods and food products in airports in the Moscow region executing FAS order issued on the basis of considering the questions asked at the Government hour at the Federal Council of the Federal Assembly of the Russian Federation.  

OFAS established that “Burger Rus Ltd., “Galereya-ALEX” Ltd. and “Master Franchising Group” Ltd. have the dominant position on the market of retail trade with food products and public catering services in Domodedovo and Zhukovsky airports.

Prices for the services of the above chains, located in the airports in the Moscow region, are considerably higher that the prices for similar services in food outlets in Moscow and the Moscow region.  

Based on it, Moscow Regional OFAS initiated an investigation upon signs of breaching the antimonopoly law.

Currently, OFAS is analyzing operations of economic entities involved in retail trade with food products and public catering services in Sheremetyevo airport.

On 28 June 11, Moscow Regional OFAS gave a press-conference in the Central Interfax Office upon the fact of opening two cases for fixing and maintaining monopolistically high prices for food products in airports near Moscow.

Reference:

Under Part 1 Article 5 of No. 135-FZ Federal Law “On Protection of Competition” of 26.07.2006, the dominant position is a position of an economic entity (group of persons) or several economic entities (groups of persons) on the market of particular goods, enabling such an economic entity (a group of) or economic entities (groups of persons) to exercise decisive influence upon the general conditions of goods circulation on the relevant market, and (or) push other economic entities for the market and (or) hamper entry of other economic entities to the market.

Clause 1 Part 1 Article 10 of the Federal Law “On Protection of Competition” prohibits actions (omissions) of the dominant economic entity that lead or can lead to preventing, restricting, eliminating competition and (or) infringing the interests of other persons, particular fixing, maintaining monopolistically high or low prices.

In accord with Clause 2 Part 1 Article 6 of the Federal Law “On Protection of Competition”, restrictions related to fixing monopolistically high price apply to the person specified in Clause 1 Part 1 Article 10 of the Federal Law “On Protection of Competition”.

Liability for such violations is specified in Part 2 Article 14.31 of the Code of the Russian Federation on Administrative Violations. Officials can be fined 20,000 RUB to 50,000 RUB or disqualified for up to three years; legal entities – from one hundredth to fifteen hundredths of the proceeds gained by the violator from selling goods (works, services) on the market where the administrative violation was committed, or the expenses of the violator for acquiring goods (works, services) on the market where the administrative violation was committed, but no more than one fiftieth of the total proceeds gained by the violator from selling all goods (works, services) and no less than 100,000 RUB, and if the proceeds gained by the violator from selling goods (works, services), on the market where the administrative violation was committed, or the sum of the expenses of the violator for acquiring goods (works, services) on the market where the administrative violation was committed, exceeds 75% of the total proceeds of the violator from  selling all goods (works, services) or an administrative violation was committed on the market of goods (works, services), that are sold at regulated prices (tariffs) under the law of the Russian Federation – from three thousandths to three hundredths of the proceeds of the violator from selling goods (works, services) on the market where the administrative violation was committed, or the size of expenses of the violator for acquiring goods (works, services), on the market where the administrative violation was committed, but no more than one fiftieth of the total proceeds of the violator from selling all goods (works, services)  and no less than 100,000 RUB – from 300,000 RUB to 500,000 RUB.