Bashkortostan OFAS elevated lifts to an appeal
The Court confirmed a violation that eliminates competition from the market of integrated lift services in Ufa.
Bashkortostan OFASfound that the Ministry of the Republic of Bahskortostan for the Housing and Utilities Sector, “UfaLift” Ltd., “Bashkiria Lift Company” (“BLK” Ltd.) and several Housing Directorates (Managing Companies)* violated the Federal Law “On Protection of Competition” (Clause 4 Article 16). In the opinion of the regional antimonopoly body, such actions push the economic entity from the market of integrated lift services in Ufa.
The Ministry held a meeting where it invited managing companies, “Bashkiria Lift Company” and “Ufa Lift Plus” Ltd. and requested to transfer lift maintenance in Ufa back to “BLK” Ltd. and “Ufa Lift Plus” Ltd. – to terminate operations.
Then managing companies sent letters to “Ufa Lift Plus” Ltd., terminating contractual relations.
Thus, the authorities interfered in the competitive environment on the market of integrated lift services in Ufa, designed to push the economic entity from the markets.
When the “forth antimonopoly package” came into effect, FAS Central Office obtained the powers to review decisions and determinations of the regional antimonopoly bodies should complains regarding actions undertaken by FAS regional bodies be filed. “Bashkiria Lift Company” Ltd. took an advantage of this right.
In spring 2016 FAS Presidium examined a complaint filed by the company. The collegial body of the Antimonopoly Service heard independent conclusions reached by representatives of the Association of Antimonopoly Experts.
As Deputy Head of FAS Sergey Puzyrevsky stated earlier, FAS Presidium dismissed the claim of “Bashkiria Lift Company” Ltd. because the decision of the regional antimonopoly body did not breach the unified practice of antimonopoly enforcement. Therefore, FAS collegial body did not identify the grounds to abolish it.
The authorities and economic entities that were pronounced the violators of the Federal Law “On Protection of Competition” appealed OFAS decision. The Court of First Instance allowed the claim; the 18th Arbitration Appeal Court, however, reversed the judgment and confirmed legitimacy of the actions taken by Bashkortostan OFAS.
* “Housing & Utility Directorate, the Kirov District, Ufa, the Republic of Bashkortostan” OJSC, “Housing & Utility Directorate, Sipailovsky, the October District, Ufa, the Republic of Bashkortostan” OJSC, “Housing & Utility Directorate, the Kalinin District, Ufa, the Republic of Bashkortostan” OJSC