COMPANIES AND URBAN AMENITIES COMMITTEE IMITATED COMPETITION AT MAINTENANCE AUCTIONS

Administrative fines will be imposed for participating in the cartel and the case materials will be forwarded to the law enforcement bodies

On 18 October 2019, the Commission of St Petersburg OFAS found that “Centre” St Petersburg  State Unitary Road Enterprise, “Kolomyazhskoe” OJSC, “Put” St Petersburg State Unitary Road Enterprise, “Avtodor SPB” OJSC, “Kurortnoe” St Petersburg State Unitary Road Enterprise, “№ 7 Motor Park” JSC and St Petersburg Urban Amenities Committee violated the antimonopoly law.

Investigating the case, St Petersburg OFAS exposed violations of the Federal Law “On Protection of Competition” by the respondents throughout 39 auctions for the amount exceeding 24 billion RUB.

St Petersburg OFAS ascertained that the auction bidders determined the winners in advance, dividing the lots between themselves by territorial-and-administrative districts of St Petersburg.

Moreover, operations of the members of the anticompetitive agreement were coordinated by the ordering party - St Petersburg Urban Amenities Committee.

Based on the arrangements with the Committee, the companies were directed to clean those districts not covered by state contract or sub-contracts. Also, the ordering party included functionally and technologically not related works in auctions in order to consolidate lots and eliminate competition.

St Petersburg OFAS issued orders to all violators, and soon the respondents shall be held administratively liable.

Head of FAS Anti-Cartel Department, Andrey Tenishev commented: “The violations exposed by St Petersburg OFAS also show signs of committing offences by respondents’ top-executives under Article 178 of the Criminal Code of the Russian Federation, so the case materials are forwarded to the law enforcement bodies”.