FAS completed investigating a series of cartels on the market of respiratory protection equipment

FAS exposed a cartel of three largest producers and distributors of civilian protective masks coordinated by “Spetszaschita Corporation” Ltd.

Taking part in procurement, cartel participants were guided by special “distribution policy” drafted to conclude a contract with the minimum reduction of the original maximum contract price in the absence of competition by “booking” each tender for supplying  non-combatant gas masks for a particular cartel participant. The coordinator - “Spetszaschita Corporation” Ltd. ensured that all participants observed the scheme.

If an “outsider” that is not a cartel member participated in tenders, the original maximum contract price could exceed 50%.

Having investigated the case, FAS Commission found that 21 economic entities violated Clause 2 Part 1 Article 11 of No.135-FZ Federal Law “On Protection of Competition” of 26.07.2006 (1).

FAS found that “Spetszaschita Corporation” Ltd.violated Part 5 Article 11 of the Federal Law “On Protection of Competition” (2).

FAS officer, Konstantin Aleshin: “This is already the forth case on bid-rigging collusion of suppliers involved in purchasing respiratory individual protection equipment. It completes the efforts of the antimonopoly body that lasted for over two years. By a series of decisions FAS managed to terminate several big cartels that monopolized practically all markets of the above goods within the boundaries of the Russian Federation. This decision made on the largest exposed cartel concerns three main producers operating on the market of respiratory protection equipment, and their distributors”.

1. Concluding an anticompetitive agreement that resulted in maintaining prices at tenders

2. Coordinating economic activity that resulted in restricted competition