Court supported FAS decision on a cartel in public procurement of medicines and medical products

The claim of “PHARM SKD” Ltd. and “NOVOPHARM” OJSC involved in collusion is dismissed

On 12 December 2016FAS found that “PHARM SKD” Ltd. and “NOVOPHARM” OJSC concluded an anticompetitive agreement (cartel) that led to maintaining auction prices (violating Clause 2 Part 1 Article 11 of the Federal Law “On Protection of Competition”).

The companies took part in more than 400 auctions for supplying medicines, medical products, decontamination equipment and therapeutic nourishment, for the total amount exceeding 400 million RUB in five regions of the Russian Federation. The auctions ended with the minimum reduction of the initial maximum contract and lacked competition. The case was opened upon a petition filed by “For Fair Procurement” Foundation for Monitoring Public Procurement and Property Trade.

“PHARM SKD” Ltd. and “NOVOPHARM” OJSC disagreed with the decision and injunctions of the antimonopoly body and filed a lawsuit. Moscow Arbitration Court, however, dismissed the claim, supporting the FAS position.

Head of FAS Anti-Cartel Department Andrey Tenishev, pointed out: “Court studied all materials of the antimonopoly case and took the FAS side. Cartel cases are most difficult, so positive judicial practice on them helps combat this extremely negative phenomenon”.

He added: “In the near future the violators shall be held administratively liable. Also the materials regarding the cartel have already been forwarded to the Ministry of Interior to open a criminal case”.