APPEAL COURT CONFIRMED A VIOLATION OF THE ANTIMONOPOLY LAW IN THE COURSE OF IMPLEMENTING AN INFORMATION SYSTEM FOR ADDITIONAL EDUCATION
The Ministry of Education of the Saratov region, a subordinate autonomous agency, “Rostelecom” PJSC and “Dnevnik.ru” Ltd. entered in an anticompetitive agreement
In 2019, Saratov OFAS exposed a fact of an anticompetitive agreement involving the Ministry of Education of the Saratov region, a subordinate autonomous agency, “Rostelecom” PJSC and “Dnevnik.ru” Ltd.
The antimonopoly law was violated in the course of procurement organized to implement an automated information system of additional education for enrollment in educational establishments for the population.
The above entities started implementing the anticompetitive agreements long before the procurement took place. In 2017, Saratov OFAS also exposed a fact of an agreement between the Ministry of Education, “Rostelecom” PJSC and “Dnevnik.ru” Ltd.
The agreement was confirmed by Court of First Instance, Appeal Court and Cassation Court that agreed with the conclusions reached by Saratov OFAS. The Courts stated that for several years the entities in question had been building their relations in such a manner as to exclude access of their competitors to public procurement.
In spite of the Court rulings coming into effect, the Ministry of Education of the Saratov region, “Rostelecom” PJSC and “Dnevnik.ru” Ltd. continued fulfilling the agreement, this time involving a subordinate agency.
The procurement of an automated system took place under the frame of a regional public programme for “Developing Education in the Saratov region till 2025”.
In breach of the law on contractual system, procurements were conducted by a subordinate agency - Saratov Regional Institute for Education Development – rather than a specialized Ministry following orders issued by the Ministry to transfer some powers.
Transfer of the government customer’s powers by the executive body to the subordinate agency led to unreasonably including subsidies to the budget for other purposes and granting them to the subordinate agency at an augmented scope.
Following the procurement outcome, the Ministry concluded a contract with “Rostelecom” PJSC that is not an executor under the contract. In its turn, “Rostelecom” PJSC entered into a subcontractor agreement with “Dnevnik.ru” Ltd. The difference in the sum of the contracts reached over half a million RUB.
Also, the procurement in question took place in accord with № 223- FZ Federal Law1, rather than the law on the contractual system for the authorities2.
Attempts by the authorities to avoid applying the law on a contractual system limited the range of procurement participants and, as a consequence, resulted in acquiring services for the needs of the region at unreasonably high prices.
Head of FAS Anti-Cartel Department Andrey Tenishev pointed out: “In view of the National Projects, particularly, the Project on developing digital economy, systemic efforts on exposing and suppressing collusions in the course of supplying software and equipment are today one of FAS priorities. Competition support and efficient spending of budgetary funds are absolutely essential for establishing a sustainable and secure informational-and-telecommunications infrastructure”.
1 № 223- FZ Federal Law “On procurement of goods, works, services” of 18.07.2011.
2 № 44-FZ Federal Law “On contractual system in public and municipal procurement of goods, works, services” of 05.04.2013.