CASSATION COURT RECOGNIZED ANTICOMPETITIVE AGREEMENT BETWEEN THE MINISTRY OF EDUCATION, “ROSTELECOM” AND “DNEVNIK.RU”

Companies concluded anticompetitive agreement to win tenders of the Ministry of Education of the Saratov region for implementing an integrated automated information system

On November 29, 2018 the Arbitration Court of the Volga District confirmed legitimacy of a decision made by Saratov OFAS about an anticompetitive agreement between the Ministry of Education of the Saratov region, “Rostelecom” PJSC and “Dnevnik.ru” Ltd.

In 2014 the Ministry of Education signed a contract with “Rostelecom” PJSC for implementing an integrated automated information system – Continent-Region” (AIS). The contract was concluded without tender procedures since the price was 100,000 RUB. The contract did not provide for transferring exclusive rights.

To execute the contract for implementing AIS in the Ministry of Education, “Rostelecom” PJSC signed a contract with “Dnevnik.ru” Ltd.

Actions of the Ministry of Education of the Saratov region, “Rostelecom” PJSC and “Dnevnik.ru” Ltd. were aimed at gaining million-RUB contracts in the future for modernizing software because only the right-holder can make changes to the program features and modernize it.

In 2015 – 2016, the Ministry of Education organized auctions for determining the executor of services for AIS modernization. The initial (maximum) contract prices were 942,000 RUB and 2 million RUB. The contract price was formed by the Ministry through quotation requests from “Rostelecom” PJSC and “Dnevnik.ru” Ltd. that overrated the costs of services in their offers.

Based on the auction outcomes, the Ministry concluded contracts with “Rostelecom” PJSC that does not produce software. In its turn, “Rostelecom” PJSC concluded subcontracts with “Dnevnik.ru” Ltd. At the same time, the difference in the contract amounts was over 1 million RUB.

Investigating the case, Saratov OFAS concluded that the Ministry of Education, “Rostelecom” PJSC and “Dnevnik.ru” entered into an oral agreement that restricted competition, particularly, restricted access of economic entities to the market of developing, modernizing and selling integrated automated systems. The antimonopoly body found that the entities violated Article 16 of the Federal Law “On Protection of Competition”.

Earlier the Ministry, “Rostelecom” PJSC and “Dnevnik.ru” twice tried to appeal the decision of Saratov OFAS. In both incidents, Courts supported the position of the antimonopoly body.

Head of FAS Anti-Cartel Department Andrey Tenishev explained: “As a result of anticompetitive actions, exclusive rights have not been transferred to the government customer, which, effectively, created a monopoly on the market of software servicing by the parties to the agreement”.