FAS IMPOSED 1.7 BILLION RUB FINE ON CARTEL PARTICIPANTS IN THE ROLLED METAL MARKET

Seven major metal traders have concluded anticompetitive agreement in order to maintain prices at auction

In January 2021, FAS Russia recognized Steel Industrial Company JSC, Metal Rolling Service Center LLC, Enterprise Stroytechcenter LLC, A Group LLC, Uralmetallstroy LLC, Equipment and Supply Management LLC, Metal Trading Company Kraso LLC as violating antimonopoly legislation*.

The companies entered into an anticompetitive collusion and, acting together for a long time, maintained prices at auctions with a cumulative initial price of 2,696,766,873 rubles.

For the conclusion and implementation of a cartel agreement, turnover fines were imposed on organizations in the total amount of 1,767,739,030 rubles**.

The decision of FAS Russia and the materials on the case were sent to law enforcement authorities to resolve the issue of initiating a criminal case on the grounds of an offence under Article 178 of the Criminal Code of the Russian Federation. Responsibility is provided in the form of imprisonment for up to seven years for committing this offence.

For reference:

* In accordance with Paragraph 2 of Part 1 of Article 11 of the Law on Protection of Competition, agreements between competing economic entities are recognized as cartel and prohibited, that is, between economic entities selling goods in the same commodity market, or between economic entities purchasing goods in the same commodity market, if such agreements lead or may lead to an increase, reduction or maintenance of prices at auction

** In accordance with Article 14.32 of the Code of Administrative Offences of the Russian Federation

Fines for each of the organizations amounted to:

SIC JSC  in the amount of 304,947,817.34 rubles;

MRSC LLC in the amount of 151 906 400 rubles;

A Group LLC in the amount of 1,012,292,252.48 rubles;

ESM LLC in the amount of 45,767,520 rubles;

ES LLC in the amount of 55,266,280 rubles;

UMS LLC in the amount of 17,574,160 rubles;

MTC Kraso LLC in the amount of 179,984,600 rubles.