FAS INITIATED CASE ON ILLEGAL COORDINATION IN THE MARKET OF WATER PURIFICATION COAGULANTS

Auctions of water utilities for procurement of coagulants were completed in the absence of competition and price decrease

The FAS Russia initiated a case in relation to JSC AURAT on the grounds of illegal coordination of economic activities of business entities in the market of coagulants for water purification. The Antimonopoly authority found such signs in the course of unscheduled inspections. The investigation is carried out jointly with the General Directorate of Economic Security and Combating Corruption of the Ministry of Internal Affairs of Russia.

JSC AURAT is one of the largest producers of coagulant – aluminum sulfate, used by water utilities for domestic water supply systems.

The FAS Russia believes that the joint-stock company distributed end-consumers and public procurement among coordinated persons. Therefore, water utilities auctions conducted under the Law on Procurement were completed in the absence of competition and price reduction.

"Various forms and methods of restricting competition at auctions of housing and utility services enterprises certainly have an impact on the cost price of services rendered and on tariffs for the population. Savings that could provide for improving the quality of services or reducing tariffs accrue to unfair market participants. This underlines once again that protection of competition has a completely practical benefit," said Andrey Tenishev, Head of the Anti-Cartel Department of the FAS Russia.