COURT PRONOUNCED LEGITIMACY OF THE DECISION OF LIPETSK OFAS ABOUT A BID-RIGGING CARTEL FOR SUPPLYING INFANT INCUBATORS

Three economic entities operated under an anticompetitive scheme during the e-auction for supplying medical products

At the auction of Lipetsk Regional Health Care Department for supplying infant incubators, setting up, commissioning, warranty servicing, operating, and staff training, two companies with pre-arranged errors in the their auction documentation (“Implant Service M” Ltd. and “Medical Complex Technologies” Ltd.) took turn to decrease contract price and then the third bidder (Medical Products” Ltd.) kicked in without price reduction and became the winner as the bid of “Implant Service M” Ltd. and “Medical Complex Technologies” Ltd. were rejected due to the errors in their documentation.

The contract price was 56.5 million RUB.

Lipetsk OFAS concluded that three companies acted in the common interests, misled other bidders and restricted competition.

The companies operated by arrangements. It is also confirmed by the fact of using a common platform for filing bids and price offers. The economic entities also knew in advance about the forthcoming document verification, since it was not the first time when the companies took part in competitive bidding, were familiar with the auction procedure and were repeatedly recognized as winners.

The Arbitration Court of the Central District confirmed an anticompetitive agreement between economic entities.