FAS OPENED A CASE AGAINST A CARTEL OF BREAD-SELLERS

Elements of the anticompetitive agreement are exposed in one of the districts of the Transbaikal Territory

To execute the instructions of the Government of the Russian Federation and exercise public control over compliance with the antimonopoly law, FAS promptly collects information about prices for socially important goods, including bread and bakery products.

In the course of the monitoring, Transbaikal OFAS exposed elements of an anticompetitive agreement between retailers, which resulted in a considerable growth of bread prices in one of the rural areas of the Transbaikal Territory.

The antimonopoly authority revealed a synchronized growth of retail prices for rye and white bread by 20% in three outlets. At the same time, an analysis of the information possessed by Transbaikal OFAS shows that there were no objective factors for increasing prices by retailers – all costs stayed at the previous level.

These circumstances as well as the collected evidence formed the grounds for Transbaikal OFAS to open a case on violating Clause 1 Part 1 Article 11 of the Federal Law “On Protection of Competition” – a cartel formed in order to increase prices.

Head of FAS Anti-Cartel Department, Andrey Tenishev pointed out: “FAS studies carefully the market of grain, flour, bread and bakery products and we do not see any objective economic factors for the growth of prices for these goods. Nevertheless, there are some intentions to fix overrated prices, and FAS suppresses them promptly, mainly applying preventative measures. Attempts to cash in on people in the conditions of the pandemic and a difficult economic situation in remote areas and municipalities, where consumers do not have a choice and have to buy goods from cartel members at excessive prices, are especially cynical. It is a real crime against the population”.

“I’d like to warn everybody who is on the edge of collusion, that such actions are punishable not only with huge administrative fines but also criminal liability for corporate executives”, emphasized Andrey Tenishev.