CASSATION COURT SUPPORTED FAS DECISION ABOUT “PENENZA” JSC AND “BRIO FINANCE” LTD.

Court of First Instance and Appeal Court also confirmed legitimacy of the decision made by the antimonopoly body with regard to the companies

On 13 November 2019, the Arbitration Court of the Moscow District took the FAS side in a dispute against “Penenza” JSC. In December 2018 FAS found that “Penenza” JSC and “Brio Finance” Ltd. violated the Federal Law “On Protection of Competition” [1].

During 2017 the companies acted as the administrators of the service of “Sberbank-AST” CJSC for “Credit financing of auction security”, which is an important channel for tender loan services.

According to FAS Commission, “Penenza” JSC and “Brio Finance” Ltd. unfairly abused their status of service administrators and entered into an oral agreement with each other: exploiting the rights of service administrators, the companies prevented connection of “SKIB” Bank” Ltd. [2] to the platform that could have restricted competition on the tender loan market.

“Penenza” JSC disagreed with the decision of the antimonopoly body and filed a lawsuit.  The Arbitration Court of First Instance, Appeal Court and now Cassation Court dismissed the claim.

Reference:

Part 4 Article 11 of the Federal Law “On Protection of Competition” bans other agreements between economic entities of established that such agreements lead or can lead to competition restriction.

[1] Part 4 Article 11

[2] since 12.11.2018 “Sovcombank” PJSC has been the legal successor of “SKIB” Bank” Ltd.