THE COURT OF CASSATION CONFIRMED THE FACT OF THE CARTEL

It should be recall that earlier the Vologda Regional Office of the FAS Russia proved the collusion of Rostelecom PJSC and TECHNOSERV A/S JSC when participating in a competition for the organization and implementation of the hardware and software complex Safe City in the Vologda district. TECHNOSERV A/S JSC refused to fight in favor of Rostelecom, which, not having the necessary resources to fulfill the contract, subcontracted the work to TECHNOSERV A/S JSC at a lower price, resulting in a profit of over 320 million rubles.

Disagreeing with the decision taken by the Regional Office of the  FAS Russia, the defendants appealed to the court, citing that the Vologda Regional Office of the FAS Russia had not proved the anti-competitive conspiracy, and also that they behaved in good faith during their participation in the auction.

However, the courts of three instances noted “A slight decrease in the initial maximum price, as well as further actions of Rostelecom PJSC and Technoserv A/S JSC to conclude a subcontract agreement for the performance of works that are the subject of the tender, also indicate that an agreement has been reached aimed at maintaining the price within the framework of an open competition.”

The defendants also appealed against the fines imposed by the FAS Regional Office for more than 49 million rubles, but the court of the first instance has already ordered TECHNOSERV A/S JSC to pay the fine imposed, and the court case against Rostelecom PJSC is being considered in the first instance.

1 Companies violated paragraph 2 of part 1 of article 11 of the Federal law On Protection of Competition.

2 Violators are brought to justice under part 2 of article 14.32 of the Code on Administrative Violations of the Russian Federation.