Court confirmed legitimacy of FAS decision and injunction regarding the Federal Penitentiary Service (FSIN Russia)

FRIN restricted competition in sales of goods for the needs of the suspects and accused in pretrial detention centres in Moscow

In February 2017 the Commissions of the Federal Antimonopoly Service (FAS Russia) found that actions of the Federal Penitentiary Service to change the system of selling food products, daily necessities and other commodity goods for the needs of the suspects and accused, detained in FSIN institutions in Moscow resulted in restricting competition and violating Part 1 Article 15 of the Federal Law “On protection of Competition”.

FSIN formalized possibility to sell goods for the needs of the suspects and accusedexclusively for “Kaluzhskoe” Federal State Unitary Enterprise. FAS received numerous complaints from the detained as well as their relatives about unreasonably high prices for the goods sold in penitentiary institutions.

Head of FAS Department for Control over Social Sphere and Trade, Timophey Nizhegorodtsev stated: “In the past three years the detainees in Moscow FSIN institutions had to buy goods at the prices considerably higher that the prices for the same goods formed on the competitive retail market.  The ruling of Arbitration Court is of high social importance since it will restore competition on the ‘closed” market of selling goods for the detainees and prevent unreasonably overrated prices on the market in the future”.

Moscow Arbitration Courtsupported FAS decision and injunction, dismissing the FSIN claim in full.