FAS OPENED AN ANTIMONOPOLY CASE AGAINST “CHERDAKLY FEED FACTORY” JSC

The company is suspected of fixing monopolistically high prices for the services of shipping grain from the state intervention fund

FAS was approached by an economic entity that had participated in tenders for selling grain from the state intervention fund. It complained that an elevator responsible for storage and shipment of grain from the state intervention fund had fixed unreasonably high prices.

Executing an order of the Government of the Russian Federation, “Integrated Grain Company” JSC used exchange trading to sell grain. A grain buying-and-selling was concluded with the winner, and the Company was the delivery base.

In the course of an inspection, FAS established that “Cherdakly Feed Factory” JSC stored grain from the state intervention fund and selling grain to economic entities acquiring it under good interventions, fixed prices for the grain shipment services higher than the price formed on the comparable competitive market.

According to FAS analysis of the competitive environment, the Feed Factory has the dominant position on the market of services for storing intervention fund grain within the defined geographic boundaries.  

Deputy Head of FAS Department for Control over the Agro-Industrial Complex Irina Yepifanova commented: “Materials analysis showed that actions of the dominant company have elements of violating the Federal Law “On Protection of Competition” in the part of fixing monopolistically high prices for grain shipment. The infrastructure facilities of the grain market such as “Cherdakly Feed Factory” JSC to a considerable extent determine the market performance. Therefore, our job is to ensure that such facilities observe the antimonopoly law”.