COURT SUPPORTED A FAS DECISION ON A BID-RIGGING CARTEL FOR SUPPLYING MEDICINAL DRUGS

On 20 February, the Arbitration Court of the Rostov region upheld a FAS decision on collusion between “Kybanpharmacia” State Unitary Enterprise of the Krasnodar region and several pharmaceutical companies at auctions for supplying pharmaceutical products

In 2019, Rostov OFAS used materials provided by active members of the Investigation Bureau of the United People’s Front to investigate a case on violating the antimonopoly law. The antimonopoly body found that “Kybanpharmacia” State Unitary Enterprise of the Krasnodar region, “Pharmservice” Ltd., “Pharmcentre” Ltd., “Sevastopolpharmacia” Ltd. concluded and participated in a cartel at an auction for supplying medicinal drugs for the needs of public medical and healthcare facilities.

Having coordinated their auction conduct tactics, the cartel members took their turn to become the winners and conclude contracts with the minimum price reduction.

Based on the decision made, all legal entities – cartel participants are held administratively liable and are fined in total around 115 million RUB.

The case materials are forwarded to the law enforcement bodies in order to open a criminal case against top executives of the pharmaceutical companies.

Head of FAS Anti-Cartel Department, Andrey Tenishev, pointed out: “The Court ruling illustrates and confirms the efficiency of the work of the antimonopoly authority in this direction. Decreasing violations in healthcare is of high social importance. Unlawful actions in this field seriously harm both the state and the people, threatening life and health of individuals, particularly, through dubious quality of supplied products”.