Court rules to review a case on an anticompetitive agreement

Vladivostok Authority, “Vladivostok Roads” Municipal Unitary Enterprise and “Vostokcement” Ltd. entered into an agreement  

On 9 March 2017, the Cassation Court pronounced a resolute part of its ruling that forwarded the case on the anticompetitive agreement for reconsideration.

On 12.10.2015 Primorie OFAS found that Vladivostok Authority, “Vladivostok Roads” Municipal Unitary Enterprise and “Vostokcement” Ltd. violated Article 16 of the Federal Law “On Protection of Competition”.

The case materials show that from 2011 to July 2015, based on the tenders on road management and provision of urban amenities, Vladivostok Department for Highways and Urban Amenities signed the contracts for over 8.95 billion RUB, 79.8% of which (over 7.14 billion RUB) were gained by “Vladivostok Roads” Municipal Unitary Enterprise. In most cases the municipal enterprise was the only bidder and concluded contracts at the maximum price or with an insignificant reduction. The group of persons of “Vostokcement” Ltd., affiliated with Vladivostok Mayor, ensured the municipal company was the winner. To carry out the works (render services) required under the municipal contracts, “Vladivostok Roads” procured inert construction materials from a company – a member of the group of persons of “Vostokcement” Ltd.

Vladivostok Authority and “Vostokcement” Ltd. disagreed with the decision of the antimonopoly body and filed a lawsuit challenging the decision of Primorie OFAS. The Court of First Instance and the Appeal Court found the arguments of Primorie OFAS unlawful. Insisting on its position, OFAS filed a claim to the Arbitration Court of the Far East District.

On 9 March 2017, the Cassation Court announced a resolute part of the ruling that abolished the earlier passed judicial acts and forwarded the case for reconsideration.