VOLOGDA LEGISLATURE EXECUTED A WARNING ISSUED BY REGIONAL OFAS

Vologda Legislature executed a warning issued by Vologda OFAS in February 2018. The antimonopoly authority warned the local self-government body not to exercise actions that can lead to violating the antimonopoly law because Vologda Legislature was planning to make a decision “On introducing amendments to No. 722 decision of Vologda Legislature “On approving the procedures for installing relocating retail facilities and facilities for rendering services to the population in “Vologda City” municipality” of 30 September 2011”.

Vologda OFAS believes that the draft municipal legal act contradicts the Land Code of the Russian Federation and No. 381-FZ Federal Law “On the basic principles of the government regulation of trading activity in the Russian Federation” of 28.12.2009.

The antimonopoly authority holds an opinion that using the land plots in public or municipal property for installing relocating retail facilities and other facilities, the types of which are determined by the Government, local self-government bodies are limited in their powers and do not have the right to adopt municipal legal acts that that establish the standards, procedure and installment conditions for relocating retail facilities and facilities for rendering services to the population, particularly, on concluding contracts with regard to installment, ascertaining the payment principle and issuing any permits for the facilities in question.

Thus, the draft decision of Vologda Legislature “On introducing amendments to No. 722 decision of Vologda Legislature “On approving the procedures for installing relocating retail facilities and facilities for rendering services for the population in “Vologda City” municipality” of 30 September 2011” does not comply with the federal law and adopting it will be conducive to violating the rights of organizations and individual entrepreneurs in the field of economic (entrepreneurial) activity.

After the antimonopoly body issued the warning, the draft decision of Vologda Legislature, submitted by Vologda Authority, has been withdrawn.