THE SUPREME COURT UPHELD THE REQUIREMENT OF THE FAS REGIONAL OFFICE TO INVALIDATE A TRANSACTION ON THE RENT OF ADDITIONAL SPACE BY "PYATEROCHKA"

The Chamber for Commercial Disputes of the Supreme Court of the Russian Federation has canceled the decisions of the courts of appeal and cassation

Earlier, the FAS Regional Office of Moscow Region appealed to the Arbitration Court of the Moscow Region with a claim for the closure of a new store of the Pyaterochka retail chain located in the Orekhovo-Zuyevo district.

The retailer and the persons belonging to the same X5 Retail Group, even before the opening of the new store, exceeded the permissible share of 25% of the volume of all food products sold in monetary terms over the past financial year in the municipality. Thus, the acquisition by the retail chain of additional areas for trading activities in the district violates the Law on Trade*.

On results of the case review, the Arbitration Court of the Moscow Region supported the position of the FAS Regional Office. The lease agreement was declared invalid.

The courts of appeal and cassation did not agree with the decision of the Arbitration Court and canceled it.

The FAS Regional Office of Moscow Region filed a claim to the Supreme Court of the Russian Federation. The Chamber for Commercial Disputes recognized the requirements of the FAS Regional Office on the recognition of the transaction invalid as justified and legitimate**.

The Authority emphasizes that there are plenty of food stores in the Orekhovo-Zuyevo district that can meet consumer’s demand.

Reference:

*Federal Law of December 28, 2009 No. 381-FZ "On the Fundamentals of State Regulation of Trade in the Russian Federation".

**Court case No. A41-65274/2020.