CARTEL CASE IN NOVOSIBIRSK IS TRANSFERRED TO COURT

Criminal case opened upon a fact of restricting competition (a cartel) is forwarded to Court in the Novosibirsk region

Novosibirsk OFAS found that “FITO Company” Ltd. and “Terra” Ltd. violated the Federal Law “On Protection of Competition”*. The companies concluded an anticompetitive agreement at auctions.

Novosibirsk OFAS established that in 2016-2017 “FITO Company” Ltd. and “Terra” Ltd. had been executing an anticompetitive agreement. The companies determined in advance between themselves and coordinated who was going to become a winner and which reduction of the initial maximum contact price could be allowed.

The anticompetitive agreement resulted in maintaining prices at 437 open electronic auctions for supplies of medicine, food products (post-surgery nutrition) and services for transporting medicine for the needs of Meshalkin National Medical Research Centre of the Ministry of Healthcare of the Russian Federation. The sum of the concluded contracts exceeded 500 million RUB.

The decision on the antimonopoly case made by Novosibirsk OFAS is included in the evidence on the case.

Novosibirsk OFAS reported about the violation to the Main Department for the Ministry of Interior in the Novosibirsk region. On 10 April 2018, the Main Investigation Department of the Main Department for the Ministry of Interior in the Novosibirsk region opened a criminal case upon elements of violations specified in Clause “c” Part 2 Article 178 of the Criminal Code of the Russian Federation.

Directors of “FITO Company” Ltd. and “Terra” Ltd. are charged under Clause “c” Part 2 Article 178 of the Criminal Code (restricting competition). Top executives of the above companies are imposed a pre-trail restraint in the form of a written recognizance to not leave.

The Ministry of Interior in the Novosibirsk region has completed the investigation, and a prosecutor has forwarded the criminal case to Oktyabrsky District Court in Novosibirsk for substantive consideration.

Head of FAS Anti-Cartel Department Andrey Tenishev said: “It should be emphasized out that a breaking point in the practice of making participants of anticompetitive agreements criminally liable came after approving a list of orders of the President of the Russian Federation on the priority measures designed to expose and suppress cartels of 08.08.2017, No. Pr-1525.

In 2019, due to collaboration between FAS and he law enforcement bodies, five criminal cases have already been forwarded to Court upon facts of competition restrictions (cartels)”.