COURT SUPPORTED A DECISION OF PRIMORIE OFAS ON A PASSENGER TRANSPORTATION CASE IN VLADIVOSTOK

The parties to the case entered into an agreement that restricted competition on the market of urban passenger transportation

In July 2015, the Commission of Primorie OFAS found that Vladivostok City Authority, “No.1 Vladivostok Passenger Motor Transport Association” Vladivostok Municipal Enterprise and “Flagman-Auto” Ltd. violated Article 16 of the Federal Law “On Protection of Competition”. The parties to the case concluded an anticompetitive agreement that restricted competition on the market of municipal passenger transportation.

Vladivostok City Authority was issued a determination to stop the anticompetitive agreement.

The agreement participants did not accept the conclusions reached by the antimonopoly body and filed a lawsuit against Primorie OFAS.

Court of First Instance and Appeal Court recognized that the arguments put forward by the antimonopoly body contradicted the law.  In March 2017, however, the Arbitration Court of the Far East District reversed the earlier judicial acts and forwarded the case for reconsideration. A subsequent series of judicial rulings confirmed the rightness of the antimonopoly body.

On 17 January 2018, the Arbitration Court of the Far East District confirmed legitimacy of the decision of Primorie OFAS on the case regarding the anticompetitive agreement between a municipal body - Vladivostok City Authority and economic entities - “No.1 Vladivostok Passenger Motor Transport Association” Vladivostok Municipal Enterprise and “Flagman-Auto” Ltd.