FAS FINED “PENENZA” NEARLY 1 MILLION RUB

“Penenza” JSC and “Brio Finance” Ltd. created difficulties for connecting “SKIB” Bank to the “Credit financing of auction bid security” service system of “Sberbank-AST” CJSC

FAS considered the cases on 7 November 2019 and imposed administrative fines on “Penenza” JSC and its General Director - 958 833 RUB 75 kopeks and 15 000 RUB accordingly.

In December 2018, FAS found that the companies violated the Federal Law “On Protection of Competition” [1]. Acting as the administrators of the “Credit financing of auction bid security” service, the companies concluded an oral agreement with each other and inadequately set and applied service connecting requirements to “SKIB” Bank Ltd. [2] compared to other entities.

Three Courts confirmed legitimacy of FAS actions.

“Anticompetitive agreements often incur considerable adverse consequences, so turnover fines upon companies are maximum justified”, pointed out Deputy Head of FAS Andrey Kashevarov. “We will continue watching carefully conduct of economic entities especially in such important segment as financing procurement participants”.

Reference:

Part 4 Article 11 of № 135-FZFederal Law “On Protection of Competition” of 26.07.2006 bans other agreements between economic entities if established that such agreements lead or can lead to restricting competition.

Administrative liability for such violations is specified in Clause 4 Article 14.32 of the Code of the Russian Federation on Administrative Violations – administrative fines:

Upon executives - from 15000 to 30000 RUB;

Upon legal entities - from 1/100 to 5/100 of the violator’s proceeds from selling goods (works, services) on the market where an administrative violation was committed, or the violator’s costs for acquiring goods (works, services)  on the market where an administrative violations was committed, but no less than 100000 RUB, and if the violator’s proceeds from selling goods (works, services) on the market where an administrative violation was committed, or the violator’s costs for acquiring goods (works, services) on the market where an administrative violations was committed, exceeds 75% of the overall violator’s proceeds from selling all goods (works, services) or an administrative violation was committed on the market of goods (works, services) that are sold under prices (tariffs) regulated in accord with the law of the Russian Federation - from 2/1000 to 2/100 of the violator’s proceeds from selling goods (works, services) on the market where an administrative violation was committed, but no less than 50000 RUB.

[1] Part 4 Article 11

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