FAS INITIATED A CASE IN RELATION TO THE LARGEST MANUFACTURER OF ORIENTED STRAND BOARDS

13-09-2021 | 13:48

The cost of this product increased by more than 300% in 2021

Due to the large number of claims received regarding the price increase of oriented strand boards, the FAS Russia analyzed the state of competition and found that the Kronospan group of companies is the largest manufacturer and occupies a dominant position in this market.

Analysis of the indicators of economic activity of the companies showed that the cost of production of OSB boards has not increased significantly unlike the price. These circumstances indicate the presence of an unreasonably high margin on the products produced by the Kronospan group of companies.

The FAS Russia initiated a case of violation of antimonopoly law against Kronospan Bashkortostan LLC, Kronospan LLC, Kronospan OSB LLC and Kronospan GMH LLC.*

If violations are found, according to the Code of Administrative Offences of the Russian Federation companies face turnover fines.

 

* Based on a violation of the Paragraph 1 of the Part 1 of the Article 10 of the Law on Protection of Competition

For reference:

Due to the price increase for building materials, the FAS Russia began inspections of large construction companies and manufacturers of building materials.

The authority initiated three cases based on establishing and maintaining monopoly high price on the flat-rolled steel market, one case based on an anticompetitive agreement on the rolled metal market in April this year.

The FAS Russia has connected all of its regional offices to inspections in the markets of building materials.

In September, the FAS Russia decided to expand the list of audited markets. As verification activities were conducted, there was a tendency to reduce prices for building materials in certain markets.

Currently, verification activities are continuing.



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