Appeal Court supported FAS in a case against “FTsTsS”
The 9th Arbitration Appeal Court dismissed a claim of the “Federal Centre for Pricing in Construction and Construction Materials Industry” Federal Autonomous Institution (“FTsTsS”)to suspend a decision and determination issued by the Federal Antimonopoly Service (FAS Russia).
In August 2015 FAS found that the Ministry of Regional Development of the Russian Federation, the Federal Agency for Construction and Housing & Utilities Sector, the Ministry of Construction and Housing & Utilities, “FTsTsS”, “Gosstroismeta” Ltd., ‘the “National Association of Costing Standards and Cost Engineering” Non-Profit Organization (“NASI”), “Stroiinformizdat” Ltd. and “Gosnormativ” Ltd violated Article 16 of the Federal Law “On Protection of Competition”.
The federal executive bodies and commercial companies concluded an anticompetitive agreement that restricted competition on the market of developing and implementing software programmes for construction costing documentation, developing and using construction design and estimate documentation.
FAS also ascertained that in May 2008 the Ministry of Regional Development, “FTsTsS”, and “Gosstroismeta” Ltd. concluded an agreement aimed at establishing control over access to the costing standards and other information on construction pricing (indices and average estimates prices), their dissemination and use for personal ends of a particular group of persons affiliated with “FTsTsS” management.
Upon the outcome of the antimonopoly investigation, FAS issued a determination to Ministry of Construction and Housing & Utilities to stop violating the antimonopoly law. In its turn, “FTsTsS” filed a law suit to suspend the decision and determination issued by the regulator.
The 9th Arbitration Appeal Court supported the conclusions of Moscow Arbitration Court and dismissed the claim of “FTsTsS”.
“Although the Ministry of Construction started eliminating the violations, “FTsTsS”, subordinate to the Ministry, initiated the appeal procedure challenging FAS decision and determination”, said the Head of FAS Anti-Cartel Department, Andrey Tenischev. “A situation when the function for developing the state costing standards is transferred to private hands is simply unacceptable. This position is formalized in the decision of the antimonopoly bodies and we are prepared to confirm its rightness at Court”.