FAS OPENED A CASE AGAINST A REGIONAL OPERATOR OF THE TAMBOV REGION
The Antimonopoly Service suspects that the company restricted the number of potential auction bidders for solid municipal waste transportation
FAS opened a case against the regional operator in the Tambov region – “TSK” JSC upon elements of violating the Federal Law “On Protection of Competition”1.
The company is the sole supplier of the services for solid municipal waste treatment in the Tambov region and, accordingly, 100% solid municipal waste are generated in the zone of its operations.
Prices for the services of transporting solid municipal waste for the regional operator should be formed on the basis of electronic auctions2, in accord with № 44-FZ Federal Law.
In June 2019, “TSK” JSC3 placed a Notice and the auction documentation on the web-site of the Integrated Electronic Trading Platform (“IETP” JSC) regarding three lots that have elements of restricting the number of potential auction bidders.
In particular, the lots:
- Do not take into account logistical factors, as well as economic and technical specifics of operations of the persons involved in solid municipal waste transportation;
- Lots where only small and medium business can participate, are absent4.
The above facts can indicate that “TSK” JSC deliberately drew up the auction documentation in such a way (including conditions, which are disadvantageous for potential transporters) that the auctions would be invalidated. It may mean that “TSK” JSC organized the auction in such a manner so that in the future the company would transport solid municipal waste on its own or in collaboration with other entities, but at the price and under the conditions that would benefit the regional operator.
Deputy Head of FAS, Vitaly Korolev emphasized: “Since contracts at auctions for selecting operators that are involved in solid municipal waste transportation, should be concluded with the bidder that offers the lowest price, violations at such auctions not only restrict competition but also increase garbage removal prices for end consumers, which is unacceptable”.
1 Clause 9 Part 1 Article 10.
2 According to the Rules of Auctions (№ 1133 Decree of the Government of the Russian Federation of 03.11.2016), based on which prices for the services of transporting solid municipal waste are formed for the regional operator.
3 Under the Rules of Auctions, based on which prices for the services of transporting solid municipal waste are formed for the regional operator, regional operators are the auction organizers.
4 Which is contrary to Clause 9 of № 1133 Rules.