WHAT HAPPENS IF FINES ARE NOT PAID?

FAS will use new fines to remind about failures to pay the old ones fines

The antimonopoly authority opened an administrative case for avoiding administrative punishment when “Vesta Pharm” Ltd. had failed to pay a 2,598,169.08 RUB within the deadline for wilful execution. 

Now the respondent is facing a double fine – 5,196,338.16 RUB.

Earlier FAS held “PHARM-PROJECT” Ltd. and “Vesta Pharm” Ltd. administratively liable for concluding and participating in an anticompetitive agreement with ordering parties during three auctions for supplying medicinal drugs for Moscow hospitals – Vinogradov State Clinical Hospital, Vorokhobov No.67 State Clinical Hospital and No.68 State Clinical Hospital.

Vorokhobov No.67 State Clinical Hospital attempted to appeal the decision of the Antimonopoly Service in the part of the grounds for recognizing violations of Clause 1 Part 1 Article 17 of the Federal Law “On Protection of Competition”. Courts of First Instance, Appeal Court and Cassation Court, however, supported FAS. 

 “PHARM-PROJECT” Ltd. paid the fine (2,598,169.08 RUB) imposed for collusion with the ordering parties within the deadlines.

Head of FAS Anti-Cartel Department, Andrey Tenishev, said: “We’d like to remind to economic entities – failure to pay an administrative fine on time incurs consequences under Part 1 Article 20.25 of the Code of the Russian Federation on Administrative Violations: imposing a new, double fine. One should not ignore fines imposed for violating the antimonopoly law”.