CASSATION COURT SUPPORTED FAS IN A CASE AGAINST DAGESTAN PHARMACEUTICAL COMPANIES

On 15 January 2020, the Arbitration Court of the Moscow District confirmed legitimacy and reasonableness of FAS decision

In February 2019, FAS found that “Regionpharma” Ltd., “Globalmedtech” Ltd., “Dagmedtechnika” Ltd., “Medpharmsnab” Ltd. maintained prices auctions for supplying medicinal drugs and medical products for medical facilities and the Ministry of Healthcare of the Dagestan Republic in 2015 - 2018.

According to FAS estimates, the overall cartel income exceeded 2 billion RUB.

Cartel participants, the Ministry of Healthcare of the Dagestan Republic as well as “Dagestan Republican Oncology Early Treatment Clinic” State-Financed Institution were found guilty of concluding an anticompetitive agreement between a customer and auction participants*.

“Regionpharma” Ltd., “Globalmedtech” Ltd., “Dagmedtechnika” Ltd., “Medpharmsnab” Ltd. are held administratively liable. The total administrative fines exceeded 250 million RUB.

Head of FAS Anti-Cartel Department, Andrey Tenishev said that “controversial actions in such an important sphere as healthcare not only harm the state budget but also carry a threat to life and health of the population because participants of competition-restricting agreement often do not care about the quality of the supplied products”.

Notes:

*Clause 1 Part 1 Article 17 of the Federal Law “On Protection of Competition”