Court confirmed legitimacy of FAS warning to the Government of the Ivanovo region

FAS found signs of violating the Federal Law “On Protection of Competition” in the actions of the regional Government

On 19 July 2017, Moscow Arbitration Court confirmed legitimacy of FAS warning to the Government of the Ivanovo region. The antimonopoly body established that a Decree¹ of the Government of the Ivanovo region created discriminatory conditions for particular agricultural producers, that sell and (or) ship milk for own processing.

It leads or can lead to restricting competition on the raw milk market.

Based on Article 39¹ of the Federal Law “On Protection of Competition”, FAS issued a warning to the Government of the Ivanovo region to stop unlawful actions.

Deputy Head of FAS Department for Control over Chemical Industry and Agro-Industrial Complex, Andrey Yerin, commented: “Moscow Arbitration Courtconfirmed legitimacy of our warning to the Government of the Ivanovo region. Earlier the 9^th Arbitration Appeal Court оdid not allow the Government of the Ivanovo region to adopt injunctive remedies in the form of loss of effect of FAS warning prior to the final judicial act on the case coming into effect”.

Reference:

¹ No.28-p Decree of the Government of the Ivanovo region “On approving the procedure for granting subsidies to increase productivity in dairy cattle breeding” of 7 February 2017