APPEAL COURT TOOK FAS SIDE IN DISPUTE WITH VOLGOGRAD AUTHORITY AND ''PAMYAT" FUNERAL AGENCY

05-06-2019 | 10:04

The actions of the Volgograd Authority restricted competition on the market of funeral services in Volgograd

 

The 9th Arbitration Appeal Court considered a FAS appeal against the ruling of Moscow Arbitration Court and recognized the reasonableness of the decision of the antimonopoly body against “Pamyat” CJSC and the City Services Department of the Volgograd Authority.

 

Earlier, FAS Commission found that the City Services Department of the Volgograd Authority and “Pamyat” Funeral Enterprise” CJSC had concluded and implemented the agreement that leads or can lead to restricting competition on the market of funeral services in Volgograd. Warnings were issued to stop the violations and exercise actions aimed at competition support.

 

As discovered in the course of the investigation, two contracts were concluded between the economic enmities in 2002: the contract for human burials [1] and the contract for servicing cemeteries and columbaria, current maintenance and capital repair [2]. Both documents were valid for 15 years.

 

In March 2017 the City Services Department of the Volgograd Authority and “Pamyat” Funeral Enterprise” CJSC entered into additional agreements that extended the contracts validity for ten more years. In accord with the additional agreements, the works should be performed free-of-charge since 1 March 2017. Thus, the entities de facto entered in new agreements for a new period till 2027 without competitive procedures as a result of reaching the agreement.

 

At the same time, making decisions on extending validity of the funeral services contracts, the Department failed to take into consideration other potential market players and those who potentially would wish to enter into contracts for servicing municipal cemeteries in Volgograd, provide their current maintenance and capital repair.

 

Ekaterina Uryukina, Deputy Head of FAS Department for Social Sphere and Trade, commented: “With such actions, the City Services Department deprived other economic entities of a possibility to take part in competitive procedures for selecting contactors to service cemeteries in Volgograd up to 2027. The actions of the Volgograd Authority could also create more advantageous conditions for “Pamyat” Funeral Enterprise” CJSC to operated\ on the market of funeral services in comparison with other economic entities”.

 

[1] No. 12 оf 30.09.2002 (corpse carriage)

[2] No. 8/1 of 30.09.2002



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