APPEAL COURT SUPPORTED FAS IN A CASE AGAINST CARTELS OF DAGESTAN CONSTRUCTION COMPANIES
The 9th Arbitration Appeal Court confirmed legitimacy and reasonableness of the decision made by FAS regarding “Mostootryad-99” JSC, “Dorstroiotryad-99” Ltd., “Burbau” Ltd. and “Dormost” Research-and-Production Association” Ltd.
In November 2018, FAS found that the companies had maintained prices at auctions for construction, repair and reconstruction works, maintenance of roads, bridges and other works (liquidating consequences of emergency situations, road traffic safety, and emergency recovery) in Dagestan in 2015-2018.
The total cartel income exceeds 7 billion RUB.
Members of the anti-cartel agreements were held administratively liable; the total fined reached exceeded 223 million RUB.
Based on the materials of the antimonopoly case, criminal proceedings are opened upon the fact of an anticompetitive agreement. The criminal investigation continues.
Head of FAS Anti-Cartel Department, Andrey Tenishev emphasized: “Today decartelization of construction and housing repair is one of important areas of work not only for FAS but for the law enforcement bodies. Actions of the persons who are guilty of concluding an anticompetitive bid-rigging agreement for constructing roads in Dagestan, will be also given a criminal law assessment under the frame of the initiated criminal case”.