MOSCOW OFAS: ROAD THAT COSTS 34.1 MILLION RUB

The antimonopoly body exposed a cartel at road facility auctions

Moscow OFAS exposed a cartel between “MolSib” Construction Company” Ltd., “Flargam” Construction Company” Ltd., and “SKTsTechnology” Ltd. that the companies formed in the course of three auctions for supplying materials and rendering services on repair of asphalt-and-concrete surface in courtyards in the South and West Administrative Districts of Moscow. The total initial (maximum) contracts price was 34.1 million RUB.

Investigating the case, Moscow OFAS found that “MolSib” Construction Company” Ltd., “Flargam” Construction Company” Ltd., and “SKTsTechnology” Ltd. paired to take part in the auctions, acting in the each other’s interests. It led to maintaining auction prices: its reduction was only 1% of the initial (maximum) contract price, and as a result “MolSib” Construction Company” Ltd. entered into a contract in total for 27.9 million RUB, and “Flargam” Construction Company” Ltd. signed two contracts, each with the price – 5.9 million RUB.

The regulator also found that during the auctions the companies exchanged information in the each other’s interests.

Moscow OFAS recognized that “MolSib” Construction Company” Ltd., “Flargam” Construction Company” Ltd., and “SKTsTechnology” Ltd. violated the prohibition of competition restriction (Clause 2 Part 1 Article 11 of the Federal Law “On Protection of Competition”).

Liability for anticompetitive agreements is specified in Part 2 Article 14.32 of the Code of the Russian Federation on Administrative Violations and is punishable by an administrative fine - up to 50% of the initial (maximum) contract price for legal entities and up to 50.000 RUB for top-executives.