FAS SPREADS PAYMENT OF FINES IMPOSED UPON DAGESTAN PHARMACEUTICAL COMPANIES

The Antimonopoly Service extended the fine deadline for “Globalmedtekh” Ltd. and “Dagmedtechnika” Ltd. for three months under the current conditions caused by fighting the pandemic

On 15 January 2020, the Arbitration Court of the Moscow District confirmed legitimacy and reasonableness of the decision made by FAS with regard to “Regionpharma” Ltd., “Globalmedtekh” Ltd., “Dagmedtechnika” Ltd. and “Medpharmsnab” Ltd. The Antimonopoly Service found that the companies had maintained prices throughout more than 1000 tenders for supplying medicinal drugs and medical products for medical facilities and the Ministry of Healthcare of the DagestanRepublic in 2015 - 2018. FAS passed a decision that the companies, the Ministry of Healthcare of the Dagestan Republic and Dagestan Republican Oncology Early Treatment Clinic formed a cartel between the ordering party and tender bidders.

According to the orders on administrative fines, “Globalmedtekh” Ltd.had to pay around 10 million RUB to the federal budget for collusion with the Ministry of Healthcare of the Dagestan Republic; “Globalmedtekh” Ltd. and “Dagmedtechnika” Ltd. also had to pay more than 47 million RUB for the bid-rigging cartel.

In view of the changed economic situation related to propagation of the new coronavirus infection COVID-19, FAS made a decision to spread order execution over three months, i.e., the maximum period specified in the Code of the Russian Federation on Administrative Violations.

Head of FAS Anti-Cartel Department Andrey Tenishev emphasized: “Taking into account the developing difficult epidemiological situation, FAS, including its regional Offices, must react promptly and adequately to the changes in the sectors that are most sensitive to the imposed restrictions. Without putting administrative pressure amid the crisis, we support business in the current circumstances. The present norms of the Code of the Russian Federation on Administrative Violations allow us to spread out fine payments in view of financial standing of persons and other circumstances, which FAS has done in the first decisions related to the changing economic situation in the midst of the pandemic”.