DAGESTAN REPUBLICAN ONCOLOGY CENTRE PAID A FINE FOR COLLUSION WITH AUCTION BIDDERS

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

The cartel members and one of the ordering parties, the “Republican Oncology Early Prevention Clinic” State Budgetary Institution of the Dagestan Republic, were also found guilty of concluding an anticompetitive agreement between the customer and the auction bidders¹.

Court of First Instance, Appeal Court and Cassation Court supported the FAS decision.

Upon the outcome of the decision-making, an officer of the “Republican Oncology Early Prevention Clinic” was held administratively liable.

The Clinic did not appeal FAS decision and the liability order, and the officer in question paid the fine.

Head of FAS Anti-Cartel Department Andrey Tenishev pointed out: “Fine is not only a punitive measure, but also a preventative one, which is especially important in view of executing the National Projects in the essential areas of social-and-economic development, including healthcare. Funds distributed through the public procurement system must be spent with maximum efficiency”.

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