Tourism Development Committee breached the law

OFAS decision and injunction will establish the order of Committee’s actions on eliminating the violation

On 27 February 2017, the Commission of St Petersburg OFAS announced the resolutive part of the decision issued with regard to the Tourism Development Committee. The claimant on the case – “Grigoriev Boris & Partners” Marketing Company” Ltd.

FAS found that the Committee t had concluded a contract for developing Petersburg tourist logo with “Art. Lebedev Studio” Ltd. (Studio) without open tenders in breach of Part 1 Article 15 of the Federal Law “On Protection of Competition”.

It follows from the documents available to the antimonopoly body that the works had already been completed at the time of signing the contract, which means that Studio was in a priority position against other economic entities involved in similar activities on the market of advertising services. Such actions of the Committee have signs of discrimination and competition restrictions prohibited by Part 1 Article 15 of the Federal Law “On Protection of Competition”.

OFAS press-release emphasizes: “According to the regulations, the antimonopoly body must publish the decision and injunction within ten working days, establishing the order of actions to be exercised by the Committee to eliminate the violation”.

Article 15of the Federal Law “On Protection of Competition” prohibits competition-restricting acts ad actions (omissions) by the authorities of the constituent territories of the Russian Federation that can lead to preventing, restricting, eliminating competition.