COURTS OF TWO INSTANCES SUPPORTED FAS POSITION REGARDING THE GOVERNMENT OF THE IVANOVO REGION
Ivanovo Regional Government violated the antimonopoly law
On 5 June 2019, FAS Commission found that the Government of the Ivanovo region violated Clause 8 Part 1 Article 15 of the Federal Law “On Protection of Competition”.
The case was opened upon No. 28-p Decree of the Government of the Ivanovo region “On approving the Procedure for granting subsidies to improve productivity in dairy cattle breeding” of 7 February 2017. The Decree creates discriminatory conditions for some agricultural producers in the Ivanovo region, that sell and (or) ship milk for own production, which can restrict competition on the raw milk market.
Earlier FAS issued a warning to the Government of the Ivanovo region to stop actions that have signs of violating the antimonopoly law under Clause 8 Part 1 Article 15 of the Federal Law “On Protection of Competition”.
The Government of the Ivanovo region disagreed with FAS warning and filed a lawsuit to invalidate it.
Moscow Arbitration Court and the 9th Arbitration Appeal Court confirmed legitimacy of FAS warning issued to eliminate the violations and perform actions designed to support competition through amendments to a Decree of the Government of the Ivanovo region that exclude discriminatory conditions for particular agricultural producers in the Ivanovo region.
Head of FAS Department for Control over Agro-Industrial Complex, Anna Mirochinenko, pointed out: “Excluding such discrimination when granting subsidies will facilitate equal conditions for operations of companies on the raw milk market in the Ivanovo region, which will create conditions for fair competition”.