FAS fined cartel participants on the market of developing and selling computer estimate programmes and design-and-estimate documentation

On 26 February 2016, the Federal Antimonopoly Service (FAS Russia) fined the “National Association of Estimated Pricing and Cost Engineering” Non-Profit Organization (3.5 million RUB), “Gosnormativ” Ltd. (9.9 million RUB), “Gosstroismeta” Ltd. (1.3 million RUB) and “Stroiinformizdat” Ltd. (100,000 RUB) for concluding an anticompetitive agreement involving the authorities and government bodies. The agreements restricted access of all interested persons to state, regional, industry estimate standards.

Background: On 31 August 2015 FAS found that the Ministry of Regional Development of the Russian Federation,  the Federal Agency for Construction and Housing & Utilities Sector (Gosstroi), the Ministry of Construction and Housing & Utilities Sector of the Russian Federation, the “Federal Centre for Pricing in Construction and Construction Materials Industry” Federal Autonomous Institution, “Gosstroismeta” Ltd., the “National Association of Estimated Pricing and Cost Engineering” Non-Profit Organization (“NASI”), “Stroiinformizdat” Ltd. and “Gosnormativ” Ltd. violated Article 16 of the Federal Law “On Protection of Competition”. Federal executive bodies, other organizations exercising the functions of the above bodies and economic entities concluded an agreement that led or could have led to restricting competition on the markets of developing and selling computer programmes on developing construction costing documents, developing and selling construction design-and estimate documentation, and  participating in the agreement.

Using administrative resources of federal bodies and organizations, “NASI” Non-Profit Organization, “Gosnormativ” Ltd., “Gosstroismeta” Ltd., and “Stroiinformizdat” Ltd. became the only holders of the costing standards required in construction with budgetary funds, which enables the above entities to impose contracts upon developers of estimate programmes and standards. “A situation when commercial organizations have control over state costing standards is unacceptable. The FAS position is that costing standards must be available for all interested persons”, pointed out the Head of FAS Anti-Cartel Department, Andrey Tenischev.

“Determinations on the fines became a logical result of the long and thorough efforts of the antimonopoly authority on investigating this complex case. FAS shall continue the work on exposing anticompetitive agreements in construction”, emphasized Deputy Head of FAS Anti-Cartel Department Andrey Philimonov.