FAS FOUND THAT NAZYVAEVSKY GRAIN ELEVATOR VIOLATED THE ANTIMONOPOLY LAW
The company abused its market dominance and fixed monopolistically high price for grain shipping
The FAS Commission fond that “Nazyvaevsky Grain Elevator” OJSC had violated the Federal Law “On Protection of Competition”1. The company fixed a monopolistically high price for shipping grain purchased with material assets from state stockpiles.
The case was opened upon a statement from “Agro Vita” JSC that had signed a grain buying-and-selling contract with Rosrezerv [the Federal State Reserve Agency] based on the result of competitive bidding for sale of material assets from state stockpiles. “Nazyvaevsky Grain Elevator” OJSC is the grain delivery basis in accord with the contract.
The FAS Commission established that Nazyvaevsky Grain Elevator used its dominance 2 and fixed a monopolistically high price for “Agro Vita” JSC for grain storage and shipping by road and rail. The price exceeded the sum of the costs of profit required to provide these services, as well as price formed in competitive conditions on a comparable market. As a result, “Agro Vita” JSC could not execute the buying-and-selling contract with Rosrezerv and had to terminate it.
FAS issued a binding order to “Nazyvaevsky Grain Elevator” OJSC. Within ten days, the company must either make amendments or withdraw the order that fixed the monopolistically high price.
1 Clause 1 Part 1 Article 10 of the Federal Law “On Protection of Competition”. Liability for such violations is specified in Part 1 Article 14.31 of the Code of the Russian Federation on Administrative Violations. The fine can be from 300,000 RUB to 1 million RUB.
2 On the market of services for storing and shipping grain purchased with material assets from state stockpiles, and put in a depositary.