FAS: UNEQUAL CONDITIONS FOR AGRICULTURAL PRODUCERS IS A WAY TO ANTIMONOPOLY CASES
Municipal authority failed to undertake due measures to free land plots from illegal lessees, which restricted competition on the market of agricultural products in the Krasnodar Territory
Earlier FAS received a complaint from an economic entity regarding actions of Bryukhovetsk District Authority (the Krasnodar Territory) that had concluded a lease contracts for agricultural land plots without competitive procedures with particular companies for 49 years. The company filed a lawsuit claiming that the District Authority illegally transferred land plots for use. Although the Court declared the contracts void, the District Authority failed to undertake actions to free the lands fro illegal lessees, which created a situation when these economic entities gained advantages for their economic operations.
FAS found that the actions of Bryukhovetsk District Authority contain signs of violating Part 1 Article 15 №135-FZ Federal Law “On Protection of Competition”.
Investigating the case, the Commission of the antimonopoly body decided that Bryukhovetsk District Authority had restricted competition on the market as its actions had created preferential conditions to limited range of persons, who continue illegal use of agricultural plots.
FAS issued an order to Bryukhovetsk District Authority to eliminate the violation1.
Natalia Isaeva, Deputy Head of FAS Fiscal Control Department pointed out: Control over agricultural land turnover is a hot topic not only for particular municipalities. Observing the principles of transparency, rule of law, accessibility, creating conditions for competition in allocating land plots as well as further control of their use by municipal bodies is one of the major objectives for local self-government bodies as well as the entire system of public power in Russia”.
Reference:
1 Under Article 19.5 of the Code of the Russian Federation on Administrative Violations, failure to execute legitimate warnings of the antimonopoly body within the deadline incurs administrative liability.