CASSATION COURT CONFIRMED FAS CONCLUSIONS ON A CASE AGAINST THE FEDERAL PENITENTIARY SERVICE OF RUSSIA

Actions of the Federal Penitentiary Service restricted competition in the course of selling goods for the needs of the suspects and the accused, held at pretrial detention facilities in Moscow

At the beginning of 2018, FAS Commission recognized that actions of the Federal Penitentiary Service, designed tochange the sales system of food products, basic necessities and other commodity goods for the needs of the suspects and the accused, detained in the facilities of the Federal Penitentiary Service in Moscow, restricted competition and violated Part 1 Article 15 of the Federal Law “On Protection of Competition”.

FAS formalized a possibility to sell goods for the needs of the suspects and the abused, exclusively to “Kaluzhskoe State Unitary Enterprises. Consequently, FAS received numerous complaints from the detainees as well as their relatives regarding unreasonably high-prices for the goods sold in penitentiary facilities.

Deputy Head of FAS Department for Control over Social Sphere and Trade, Ekaterina Uryukina pointed out: “FAS decision and injunctions aimed at restoring competition on the “closed” market of selling goods for the detainees as well as preventing an unreasonable price overrating on the market in the future, was supported by Courts of three instances”.