COURT CONFIRMED A CARTEL OF 30 COMPANIES – SUPPLIERS OF INDIVIDUAL RESPIRATORY PROTECTIVE EQUIPMENT
The cartel dividing the market between its participants maintained prices at 1 308 tenders
On 10 January 2018 the 9th Arbitration Appeal Court confirmed legitimacy of FAS decision regarding 30 suppliers* of gas masks, gas and smoke protective equipment, respirators and other means of individual respiratory protection (СИЗОД) and the cartel coordinator – “Tambovgalvanotekhnika” OJSC named after Livshcits.
In July 2016 FAS established that 30 suppliers of individual respiratory protective equipment concluded an anticompetitive agreement on maintaining prices на торгах and dividing the markets (Part 1 Article 11 of the Federal Law “On Protection of Competition”), while “Tambovgalvanotekhnika” OJSC coordinated the cartel (Part 5 Article 11 of the Federal Law “On Protection of Competition”).
The cartel of suppliers of individual respiratory protective equipment operated from April to June 2016. The anticompetitive agreement was implemented at more than 1 300 tenders for the total amount exceeding 500 million RUB.
Investigating the case, the Commission of the antimonopoly body analyzed 7 markets and exposed that the markets were divided between cartel members in line with the geographical principles. All of the 1 308 tenders were “pre-booked” for a particular cartel member.
The ruling of the Appeal Court confirmed legitimacy of not only FAS decision on the antimonopoly case but also all injunctions on administrative cases issued against the defendants.
Deputy Head of FAS Maxim Ovchinnikov stated: “Court rulings that support the position of the antimonopoly body in the part of suppressing cartels – is a good signal for the market players. Economic entities should understand that anticompetitive conduct is associated with serious sanctions that can many-fold exceed the revenue gained through such conduct”.
* “ARTI-Works” OJSC, “ARTI” OJSC, “ARTI Trading House” Ltd., “AUTOR” Ltd., “AUTOR-NN” Ltd., “Professional Protecton” CJSC, “AlexStroi” Ltd., an individual entrepreneur L. Zamana, “Lotos 911” Ltd., an individual entrepreneur O. Ovchinnikiv, “Sibzaschita” Ltd., an individual entrepreneur S. Sychkaryov, “Promzaschita” Trading House” Ltd., “Rostech-Postavka” Ltd., “Taganai AVM” Ltd., “SIZ-Snab” Ltd., “RIM” Trading Company” Ltd., “RIM” Group” Ltd., “OBEREG” Ltd., “UralInvestResource” Ltd., “PromSnabSibir” Ltd., “South-West Special Association” Ltd., “GO Zaschita SPB” Ltd., “Spetszaschita” Ltd., “STD Tekhnika Bezopasnosti” Ltd., “Region-Market” Ltd., “PozhTechAlliance” Ltd., “Educational Project” Ltd., an individual entrepreneur V. Ajoichik, “Khimservice” Ltd. (cartel).