COURT CONFIRMS THAT “ROSTELECOM” PJSC PARTICIPATES IN A CARTEL

On 19 February, the Arbitration Court of the Vologda region confirmed legitimacy of the decision of Vologda OFAS regarding collusion between “Rostelecom” PJSC and “TEKHNOSERV А/С” JSC in the course of procurement for organizing and implementing the “Safe city” hardware-software system

At the end of 2018, Vologda OFAS established a fact of violating the antimonopoly law by “Rostelecom” PJSC and “TEKHNOSERV А/С” JSC. Their actions resulted in maintaining auction prices for organizing and implementing the “Safe city” hardware-software system in the Vologda region.

The defendants jointly took part in the procurement conducted by the “Regional Security Centre”  Government Agency of the Vologda region with the initial maximum contract price over 809 million RUB, “Rostelecom” PJSC became where the winner. To execute the procurement contract, “Rostelecom” PJSC announced its own auction with a similar subject; the sum, however, was approximately 483 million RUB. Based on the auction outcome, a contract was concluded with a participant of the previous procurement who had earlier refused to compete - “TEKHNOSERV А/С” JSC.

Also, actions undertaken by the “Regional Security Centre” towards bunching procurement items were classified by the antimonopoly body as a violation of the Federal Law “On Protection of Competition”, which resulted in restricting competition by creating preferential conditions for participation in auctions.

Court confirmed legitimacy of the conclusions reached by Vologda OFAS.

“Rostelecom” PJSC and “TEKHNOSERV А/С” JSC are fined over 48 million RUB for taking part in the cartel.

The Department of the Ministry of Interior in the Vologda region is carrying out an inspection of top executives of “Rostelecom” PJSC and “TEKHNOSERV А/С” JSC upon elements of an offence under Article 178 of the Criminal Code of the Russian Federation.

Head of FAS Anti-Cartel Department, Andrey Tenishev, pointed out: “FAS Russia and the Office of the Antimonopoly Service in the Vologda region undertake continuous efforts to expose and suppress cartel agreements. The cartel in question demonstrates that the law is violated universally at any types of auctions and tenders and in any sectors. Combating cartelization, which is the main challenge to the economy, the antimonopoly body must coordinate efforts with FAS regional Offices as well as various government bodies in order to suppress and expose cartel agreements”.