Appeal Court confirmed legitimacy of FAS acts regarding “Lenta” retailer
“Lenta” Ltd. created discriminatory conditions for suppliers of alcohol products
On 30 May 2017, the 9th Arbitration Appeal Court upheld the judgment of Moscow Arbitration Court and dismissed the claim of “Lenta” Ltd.
In June 2016, FAS found that “Lenta” Ltd. violated the Law on trade (Clause 1 Part 1 Article 13). The retailer created discriminatory conditions for suppliers of wine alcohol products while providing marketing services in 2013-2015.
The chain charged wine suppliers different payments for the same scope of services for goods placement as well as information about the goods in the “Goods Band” catalogue.
“Lenta” Ltd. created discriminatory conditions for some suppliers of alcohol products. To support competition FAS requested the company to eliminate the exposed violations.
FAS also opened 41 administrative cases, based on which issued 37 determinations to hold “Lenta” Ltd. administratively liable and fine the company (under Part 1 Article 14.40 of the Code on Administrative Violations). 4 administrative cases were terminated due to expiry of the limitation period. The total fines reached 74 million RUB.
The company intended to challenge the decision of the antimonopoly body; however, the Appeal Court upheld the judgment and recognized legitimacy of FAS acts.
“Court supported FAS approaches for proving discriminatory conditions created by retail chains. Unfair practices of retailers against suppliers of food products are under FAS careful attention”, pointed out Deputy Head of FAS Department for Control over Social Sphere and Trade, Ekaterina Uryukina.