Udmurtia OFAS exposed collusion between the Ministry of Health Care of the Republic of Udmurtia and two state unitary enterprises

The Ministry of Health Care of the Republic of Udmurtiaand two state unitary enterprisesconcluded an anticompetitive agreement that led or could have led to restricting competition

Udmurtia Ministry of Health Care assigned powers to “Pharmacia” State Unitary Enterprise to organize auctions for the needs of medical institutions, concluding a contract with the company.

Udmurtia Ministry of Health Care, “Pharmacia” and “Apteki Udmurtii” State Unitary Enterprise were aware in advance that “Apteki Udmurtii” was going to take part in the auctions organized by “Pharmacia”. Out of 1196 auctions conducted by “Pharmacia”, “Apteki Udmurtii” was involved in 281 and won 185 auctions.

Since the same physical person is Director of both “Pharmacia” and “Apteki Udmurtii”, the scheme was designed to give preferential conditions to “Apteki Udmurtii” at the auctions, particular, through obtaining information about the auction conditions before the auction announcement.

Investigating the case, the antimonopoly body established that the persons responsible for preparing lots for joint auctions upon applications of medical institutions and publishing on the official web-site, included staff of “Apteki Udmurtii”.

Thus, lots for the joint auctions were formed by “Pharmacia” in the interests of “Apteki Udmurtii”.

The Commission of Udmurtia OFAS found such scheme of organizing procurement for the needs of medical institutions an anticompetitive collusion between Udmurtia Ministry of Health Care, “Pharmacia”, “Apteki Udmurtii”.

For committing the violations, the companies can be fined turnover administrative fined from one tenths to a half of the initial costs of the auction subject, but no more than one twenty fifths of the total proceeds gained by the violator from selling all goods (works, services) and no less than 100,000 RUB, while the officials of Udmurtia Ministry of Health Care, “Pharmacia”, “Apteki Udmurtii” can be fined from 20,000 RUB to 50,000 RUB or disqualification for up to three years.