THE FAS RUSSIA FOUND THE REGIONAL OPERATOR OF THE REPUBLIC OF KHAKASSIA VIOLATED ANTIMONOPOLY LEGISLATION

The dominant company has limited the number of potential bidders for the transportation of municipal solid waste (MSW)

The Commission of the FAS Russia found the regional operator of the Republic of Khakassia, AEROSITI-2000 LLC, as violating the Law on Protection of Competition [1]. The organization has limited the number of potential bidders for the provision of services for the collection and transportation of municipal solid waste.

The regional operator was obliged to conduct bidding in order to form prices for MSW collection and transport services and, as a result, to conclude contracts with MSW transport operators. It should be reminded that according to the current law, the population and enterprises of the region do not have the opportunity to enter into contracts for the provision of services for the treatment of MSW with other economic entities.

According to the FAS Russia, the company AEROCITY-2000 intentionally compiled the auction documentation in such a way as to prevent other companies, including representatives of SMEs, from participating in the auction [4], including in the auction documentation unenforceable and unprofitable terms of the contract for potential participants, for example, conditions for large penalties. At the same time, the conditions presented in the auction documentation differ significantly from the contracts concluded by the regional operator in the territories in respect of which the auction was not held.

As a result, in each of the 3 electronic auctions, 1 application was submitted, and the auction was declared invalid. The company did not re-bid [5].

The decision taken by the antimonopoly service is intended to make the bidding procedure more transparent for potential transporters and to prevent violations of the legislation by other regional operators. In addition, the actions of the FAS Russia to prevent violations of the legislation by the company AEROSITY-2000 will reduce the cost of transporting MSW in the territory of the Republic of Khakassia, which may later reduce the tariff on the service of MSW for the consumer.

For reference:

[1] paragraph 9 of part 1 of Article 10 of the Law on Protection of Competition
[2] paragraph 3 of the Bidding Rules, which result in the formation of prices for MSW transport services for the regional operator, approved by the resolution of the Governmentof the Russian Federation of November 3, 2016 No. 1133;

[3] article 24.7 of the Federal Law of June 24, 1998 No. 89-FZ “On Production and Consumption Waste”, article 30 of the Housing Code of the Russian Federation, paragraph 5 of the Rules for the management of municipal solid waste, approved by the Government of the Russian Federation of November 12, 2016 No. 1156;

[4] paragraph 9 of the Bidding Rules, which form the price of MSW transport services for the regional operator, approved by the resolution of the Government of the Russian Federation of November 3, 2016 No. 1133;

[5] paragraph 13 of the Bidding Rules, based on the results of which prices for MSW transportation services for the regional operator are formed, approved by the resolution of the Government of the Russian Federation of November 3, 2016 No. 1133.