THE CASSATION SUPPORTED THE DECISION OF FAS ON THE ANTI-COMPETITIVE AGREEMENT FOR 253.4 MILLION RUBLES

In June 2021, FAS recognized these persons as violated the Law on Protection of Competition*. In 2019, the Southern Customs Administration (UTU) held an auction for the purchase of a building with an initial price of 253.4 million rubles. The Customs Administration and the company entered into an anti-competitive agreement, which could lead to the creation of preferential conditions for KSM-14 LLC.

The UTU formed the documentation requirements so that they could limit the range of potential procurement participants who could sell real estate objects. The possibility of participation of other persons was limited by establishing excessive requirements for the object of purchase, including in terms of the year of construction, territorial location, total area of the building etc. At the same time, KSM-14, in turn, had access to information about the preparation and approximate date of the auction. The organization also had the opportunity to bring its own facility in line with the customer's requirements, including carrying out repair work.

The defendants appealed the decision of FAS in the courts of three instances, but they all supported the position of the Authority.

Upon violation of the antimonopoly legislation, KSM-14 LLC was brought to administrative responsibility in the form of a fine. Criminal proceedings are being conducted against officials of KSM-14 LLC and UTU on the fact of fraud on a particularly large scale**.

For reference:
*Clause 1, Part 1, Article 17 of the Law on Protection of Competition
**Part 4 of Article 159 of the Criminal Code of the Russian Federation