CASE ON SEAL-AND-LOCK DEVICES IS INCLUDED IN THE RATING OF THE BEST CASES – 2018

Based on the case outcome, competition was restored on the markets of selling seal-and-lock-devices

From 2008, manufacturers of seal-and-lock devices concluded and participated in an anticompetitive agreement that purpose of which was to fix and maintain prices and divide the market by scope of sales and the categories of buyers of seal-and-lock devices used for railway transportation.

FAS found that “STRAZH” IPK” JSC, “Trans-Plombir” Ltd., “SotekKomCentre” Ltd., “KZMI” TD Ltd. and “OTsV” CJSC violated the Federal Law “On Protection of Competition”.

“OTsV” CJSC coordinated operations of seal-and-lock devices manufacturers in order to fix prices for some of their types.

Using special software, the cartel members and the coordinator were actively exchanging information enabling to control the lifecycle of any seal-and-lock device from production, sale to disposal. The special software was located in the premises of “OTsV” CJSC. All cartel members had access to the software and could entry data and control competitors’ activities.

In the course of the inspections, FAS found communications between cartel members and documents according to which the cartel regularly coordinated the volumes of production and sales, client-allocation tables and other evidence. Written instructions from the coordinator to the market players were found that resulted in increasing prices for particular types of seal-and-lock devices.

Courts of three instances confirmed legitimacy of the actions undertaken by the Antimonopoly Service.

Administrative cases are opened against all respondents.

FAS suppressed operations of the cartel that existed around 10 years and controlled the entire market. The break-up of the cartel resulted in reducing procurement prices for end-consumers by two-three times.

* Decisions on entering in the list of the best cases are made by FAS Presidium.