COURT UPHELD FAS DECISION REGARDING LAND PLOTS IN BELGOROD
Earlier FAS found that Belgorod Regional Department of Property and Land Relations, “Belgorod Land Fund” JSC, “Yamskaya Step” Ltd. and “Krsnenskaya Agrofirm” Ltd. concluded and participated in an anticompetitive agreement
Belgorod Regional Department of Property and Land Relations and the companies executed a scheme for leasing land plots without a mandatory competitive bidding procedure. Therefore, land plots in joint ownership in the Belgorod region were unlawfully transferred to particular companies.
FAS also found that the Government of the Belgorod region and Belgorod Regional Department of Property and Land Relations included competition-restricting provisions in some acts, contrary to Article 15 of the Federal Law “On Protection of Competition”. FAS issued warnings to stop the violations that were executed within the deadline.
The respondent disagreed with the FAS decision and filed a lawsuit. The 9th Arbitration Appeal Court, however, supported the FAS position and dismissed the claim.
Head of FAS Anti-Cartel Department Andrey Tenishev explained: “As a result of such actions companies that could participate in competitive bidding for lease of land plots in the Belgorod region could not exercise their right to compete for a land plot lease contract. FAS classified such actions as a violation of Clause 4 Article 16 15 of the Federal Law “On Protection of Competition”.