1.5 MILLION RUB FINE: ARBITRATION COURT SUPPORTED A DECISION OF SARATOV OFAS AGAINST “NOVY VEK” CONSTRUCTION COMPANY” LTD.

A construction company concluded an anticompetitive agreement with an Authority in the Saratov region

Earlier Saratov OFAS opened an antimonopoly case against “Novy Vek” Construction Company” Ltd., Engels Municipal Authority and the Property Management Committee upon elements of competition restriction [1]. The case was based on materials supplied by the Prosecutor’s Office of the Saratov region.  

Under the agreement, for example, the local self-government body and “Novy Vek” Construction Company” Ltd. changed the type of allowed use of a land plot in Engels, Stepnaya St., from “building and arranigng utility networks” to “multi-storey apartment houses”, which allowed the Construction Company to obtain the lease rights for the land plot without competitive bidding. It restricted competition on the housing construction market. “Novy Vek” Construction Company” Ltd. also fulfilled the agreement by building an apartment house on the plot.

Saratov OFAS fined the construction company 1.5 million RUB [2], however, against “Novy Vek” Construction Company” Ltd. disagreed with the decision of the antimonopoly body and attempted to challenge it at Court but to no avail. Courts of First Instance and Appeal Court supported the position of Saratov OFAS.

Reference:

[1] Clause 4 Article 16 of the Federal Law “On Protection of Competition”

[2] Part 4 Article 14.32 of the Code of the Russian Federation on Administrative Violations