FAS ENDORSES Х5 RETAIL GROUP TO SELL SOME SOCIALLY IMPORTANT GOODS WITHOUT MARK-UPS

The antimonopoly body hopes that the retailer’s initiative will be supported by other economic entities involved in commercial operations

The Federal Antimonopoly Service supported the initiative of Х5 Retail Group that plans to sell some socially important goods at the manufacturer’s ex-works prices. The main objective is to minimize adverse effects for consumers caused by propagation of the coronavirus infection in Russia.

“In our statements, FAS has repeatedly reminded representatives of business about the importance of responsible behaviour, particularly, that they should not take advantage of current situation for their own enrichment. That is why we are pleased to see that Х5 Retail Group has put forward its initiative. Corporate social responsibility is essential in a difficult situation experienced now by people in Russia due to propagation of the coronavirus infection. FAS hopes that other retailer chains will support the initiative of Х5 Retail Group”, said Stats-Secretary, Deputy Head of FAS Andrey Tsarikovsky.

Earlier Х5 Retail Group asked FAS to assess whether the retailer’s initiative conforms to the antimonopoly law. Having considered the petition, the Antimonopoly Service reached a conclusion that the corporate actions do not contradict the norms of the Law on trade [1].

The petition of Х5 Retail Group also stated that other economic entities, including “Magnit” PJSC, can join the initiative, which, in FAS opinion, will not violate the norms of the Federal Law “On Protection of Competition” and constitutes permitted concerted actions [2].

Timophei Nizhegorodtsev, Head of FAS Department for Control over Social Sphere and Trade, pointed out: “We believe that the joint initiative of several retail chains to sell socially important goods without mark-ups is a very right and timely step in terms of the antimonopoly law”.

Reference:

[1] Clause 8 Part 2 Article 8 of № 381-FZ Federal Law “On the fundamental principles of the government regulation of trade activities in the Russian Federation” of 28.12.2009.

[2] Article 13 of № 135-Federal Law “On Protection of Competition” of 26.07.2006.