SENTENCE TO SUPPLIERS OF MEDICAL EQUIPMENT AND MEDICINE IN THE REPUBLIC OF KARELIA

31-12-2019 | 08:45

Moscow District Court in St Petersburg brought in a verdict of guilty to three top-executives of suppliers of medical products and pharmaceuticals: they were found guilty of committing an offence under Clause “а” Part 2 Article 178 of the Criminal Code of the Russian Federation

The Court gave a 2.5-year suspended prison sentence to one of the top-executives of the firms - cartel members, and two other accused – 2 years of suspended prison sentence each. All accused are given a 2-year probation period and additionally fined 250 000 RUB each.

The participants of the anticompetitive agreement are also banned from doing business related to turnover of medical equipment and drugs for two years.

The criminal case was opened upon a decision of Karelia antimonopoly body as well as materials obtained in the course of inspections, submitted earlier by Karelia OFAS to the Prosecutor’s Office of the Republic of Karelia and the Investigation Department of the Investigation Committee of the Russian Federation.

Karelia OFAS recognized that actions of commercial firms from St Petersburg – “Medlon” Ltd., “NikaMed” Ltd., “Medlon -DV” Ltd. – were unlawful: the companies restricted competition in the course of auctions for supplying medical equipment and medicine purchased for the needs of healthcare facilities in Karelia in 2014 - 2017.

Judicial proceedings confirmed that the competitors and their top-executives formed a cartel in the course of 94 electronic auctions with the aim of obtaining the right to conclude contracts at the most profitable price.

The government customers at the auctions were more than 20 healthcare facilities in Karelia. The total income gained by the criminal case defendants as a result of their unlawful operations exceeded 73 million RUB.

“The guilty verdict on this criminal case is a result of efficient interaction between the antimonopoly and law enforcement bodies of Karelia. The danger of cartels for national economic security is very high. To prevent damage from this unlawful activity, all of us must constantly strengthen and increase the quality of collaboration, which will make punishment for committing the above unlawful acts inevitable”, emphasized Head of Karelia OFAS, Artur Pryakhin.



Site Map

News & Events Press Releases Media Releases Image Library About the FAS Russia What We Do General Information Mission, Goals, Values Priority Setting Institutional Memory Stakeholders Engagement Center for Education and Methodics Our History Our Structure Powers of Head and Deputy Heads Our Ratings GCR Using our website International Cooperation Treaties & Agreements International Working Groups Working Group on Research of Competition Issues in the Market of International Telecommunications (Roaming) Meetings Working Group for Studying Competition Problems in the Pharmaceutical Sector Concept Note Meetings OECD Competition Committee OECD meetings 2013 OECD meetings 2014 OECD meetings 2015 OECD meetings 2016 OECD meetings 2017 OECD meetings 2018 FAS Annual Reports OECD-GVH RCC RCC Newsletter ICAP Council on Advertising Headquarters for Joint Investigations UNCTAD 13th session IGE UNCTAD Resolution Russian contributions 14th session IGE UNCTAD Resolution Russian contributions 15th session IGE UNCTAD 16th session IGE UNCTAD 17th session IGE UNCTAD EEU Model Law on Competition ICN BRICS BRICS Conferences Documents BRICS Coordination Committee on antimonopoly policy BRICS Working Groups for the research of competition issues in socially important markets Cooperation within the BRICS BRICS Coordination Committee on antimonopoly policy EU APEC Competition Policy and Law Group Annual meetings Projects ERRA Full Members Organizational Structure Archive Working Group on Investigating Issues on Pricing in the Oil and Oil Product Markets and Methods of their Functioning Meetings Document Library Legislation Reports & Analytics Cases & decisions Contacts Give feedback Contact us Links Authorities Worldwide