FAS REVEALED A CARTEL AT THE AUCTION WHICH COVERED 17 REGIONS

11 companies agreed not to reduce the price in 30 procurement procedures in the markets of medical products and medical equipment

The FAS Russia has recognized Bitest LLC, MediaTrade LLC, Impulsmed LLC, Medgorod LLC, Empire LLC, Alltest LLC, Global Park LLC, Majesti LLC, Trustmed LLC, Narcolab LLC and Pharmpost LLC as violating an antimonopoly legislation*.

The companies concluded an anti-competitive agreement, which led to the restriction of competition in 30 trade procedures in 17 regions of the country**. In 2017-2019, the organizations signed contracts for the supply of medical diagnostic devices, as well as necessary expendable materials for detection of addictive substances and alcohol. The total value of the contract was 125,737,491 rubles.

As part of the case, three of the eleven companies voluntarily reported to the Authority about the collusion.

The Competition Authority notes that the maintenance of prices by cartel participants could lead to an unreasonable increase in prices for medical equipment purchased by customers, as well as to an increase in budget expenditures and the cost of services provided to the population in medical institutions.

Violators are subject to turnover fines in accordance with the Administrative Code of the Russian Federation***. The materials of the antimonopoly case will be transferred to law-enforcement authorities to decide on initiating a criminal case.

Reference:

*Paragraph 2 of Part 1 of Article 11 of Federal Law № 135-FZ of 26.07.2006 “On Protection of Competition”

**Moscow, St. Petersburg, regions of Moscow, Vologda, Samara, Ryazan, Lipetsk, Rostov, Tula, Kemerovo, Tver, territories of  Krasnodar, Perm, Khabarovsk, Altai, the Republics of Tatarstan and Tyva

***Part 2 of the Article 14.32 of the Administrative Code of the Russian Federation