THE FAS RUSSIA INITIATED THREE CASES AGAINST COMPANIES WORKING IN FLAT PRODUCTS MARKET

The Service found companies Severstal, Magnitogorsk Iron and Steel Works and PJSC Novolipetsk Steel maintaining monopolistically high prices

Based on received applications on the steep increase in prices for hot rolled flat products, the FAS Russia performed an analysis and found the indications of establishing and maintaining monopolistically high prices for hot rolled products in the actions of PJSC Severstal and PJSC Magnitogorsk Iron and Steel Works and PJSC Novolipetsk Steel [1].

According to the FAS Russia, the prices for rolled products surged faster than those of commodity costs. The demand from Russian consumers did not soar, which consequently could not trigger an increase of prices by more than 50% in the first half of 2021.

Given that indications of violating the anti-monopoly legislation were found in the actions of the companies competing in the market of hot rolled products, FAS Russia has initiated separate cases against each company. Such consideration will avoid the commercial information leakage of competing companies and arrangements on their positions and actions.

In case of establishing the fact of violation, turnover-based fines can be imposed on companies [2].

For reference:

 [1] Indications of violation of Paragraph 8 of Part 1 of Article 10 of the Law on Protection of Competition. Severstal, Magnitogorsk Iron and Novolipetsk Steel occupy a collective dominant position in the hot rolled products market
 [2] Under the Article 14.31 of the Code of Administrative Offences of the Russian Federation