FAS FOUND A VIOLATION OF ANTIMONOPOLY LAW BY MMK, NLMK AND SEVERSTAL

After a comprehensive study of the circumstances of the case and consideration of the evidence and arguments presented by the parties, the Commission concluded that since January 2021, PAO Severstal, PAO MMK and PAO NLMK maintained monopolistically high prices for hot-rolled flat products in Russia.

Since January 2021, the prices for hot-rolled flat products have increased disproportionately to the change in the production costs incurred by Severstal, MMK and NLMK.

The behavior of dominant rental producers may lead to the restriction of competition in adjacent markets*. The case materials contain evidence indicating that the defendants established higher prices for the domestic market in comparison with the external one.

The persons participating in the case have the right to submit explanations, evidence and arguments to the Commission in writing regarding the circumstances set out in the conclusion on the circumstances of the case before the end of the consideration of the case on violation of antimonopoly law and the announcement of the operative part of the decision on it at the Commission’s meeting.

The next hearing of MMK and Severstal is scheduled for January 20, 2022, whereas NMLK is going to be heard on for January 21.

For reference:

* Paragraph 1 of part 1 of Article 10 of the Law on Protection of Competition prohibits the actions of an economic entity occupying a dominant position, the result of which is or may be the prevention, restriction, elimination of competition and (or) infringement of the interests of other persons, including the establishment, maintenance of monopolistically high or monopolistically low prices of goods