SINCE 2015 FAS HAS EXPOSED FOOD SUPPLY CARTELS FOR 16.5 BILLION RUB

Invited experts and members of Public Councils at FAS regional Offices discussed low-quality of products supplied to budgetary entities

The Public Chamber of the Russian Federation held the First National Research-to-Practice Conference of FAS Public Councils.

Deputy Head of FAS Anti-Cartel Department Ekaterina Konopkina took part in the section on “Control of the quality of food products in budgetary entities”. She emphasized a high level of cartelization on the food products supply market. For example, from 2015 to H1 2019 the income of the participants of the anticompetitive agreements exposed by FAS exceeded 16.5 billion RUB.

High social danger of such anticompetitive agreements is that the customers are educational pre-school and medical facilities. In this context, the food products sector in under special control.

Ekaterina Konopkina pointed out that anticompetitive agreements with the authorities are growing. For examples, in 2018 the antimonopoly bodies opened 300 cases against anticompetitive agreements with the authorities, which is 32% more that in 2017.

The next speaker was Vadim Nuzhdin, Co-Chair of the Regional Headquarters of the All-Russian People’s Front, the coordinator of the “For Fair Procurement” Project. During the discussion, he emphasized the significance of cooperation between grassroots movements and FAS and highlighted the shortcomings of the current law.

According to Vadim Nuzhdin, “there are insurmountable obstacles in the law, and we must turn the tide, taking a tough position against cartels”.

In 2018, FAS and activists and experts of the “For Fair Procurement” Project of the All-Russian People’s Front studied procurement of social food products in regions of Russia to check whether there are cartels in organizing food supplies. Signals from ARPF whistle-blowers resulted on opening more than 60 antimonopoly cases by competition authorities in catering on education and medical facilities in Russia. The total contract sum for the initiated cases reached over 5.5 billion RUB.

Another speaker at the session was Head of Kaluga OFAS Dmitry Karetin, who put forward proposals on countering circulation of poor-quality food products.

“Special assessment technique should be devised for food products and the danger criteria for life and health introduce turnover fines for sellers, and give clear definition of counterfeit in the law”, said Dmitry Karetin.

Head of Ivanovo OFAS Alexander Borovikov and Acting Head of Krasnoyarsk OFAS, Head of a Unit, Alexander Godovanyuk, also took part in the event.

Summing up the discussion, Ekaterina Konopkina pointed out that to automate exposure of cartels and other anticompetitive agreements, FAS has devised a software concept – “Big Digital Cat” to promptly expose signs of anticompetitive bid-rigging agreements and form evidence corroborating that a cartel was formed and pursued.