Appeal Court upheld more than a 10-million fine for “TransPack”
On 21 April 2016, the 9th Arbitration Appeal Court upheld the judgment of the Court of First Instance, confirming the administrative fine to “TransPack” Ltd., imposed by FAS upon investigating a case on collusion to restrict competition in postal services.
In particular, the Court found the appealed determination on imposing the fine legitimate and justified. The Court also concluded that the size of the fine was determined adequately, both arithmetically and methodologically correct.
On 11 June 2015, FAS found that “Russian Post” Federal State Unitary Enterprise and “TransPack” Ltd. violated Part 4 Article 11 of the Federal Law “On Protection of Competition”: concluded and implemented an anticompetitive agreement that restricted competition in the field of contracts for post carriage services. As a result of the anticompetitive agreement other companies, earlier taken part in the public procedures of “Russian Post” for determining the supplier of carriage services, were pushed out from this segment of the transportation market. Later “TransPack” Ltd. was held administratively liable for concluding a competition-restricting agreement and fined over 10 million RUB.
“This ruling once again confirmed inevitably of punishment for participants of anticompetitive agreements. The antimonopoly body continues its efforts to expose and suppress such violations, including communications services”, pointed out the Head of FAS Anti-Cartel Department, Andrey Tenischev.
“The main results are that the Appeal Court found that determination on imposing the fine legitimate and justified. Economic entities must understand that taking part in an anticompetitive agreement, they bear relevant risks: turnover fines and reputational costs”, emphasized Deputy Head of FAS Anti-Cartel Department, Andrey Filimonov.