REGIONAL OFFICES OF FAS OPENED FOUR CASES AGAINST CHICKEN EGG PRODUCERS
26-12-2023 | 17:45
Kemerovo, Voronezh, Ivanovo and Donetsk OFAS identified signs of violations of the Law on Protection of Competition in the actions of companies
As a result of studying the market, as well as analyzing the presented materials, Kemerovo OFAS revealed that the producers of chicken eggs, Inskaya Poultry Farm LLC and Yashkinskaya Poultry Farm LLC, are part of the same group of persons, which occupies a dominant position in the regional market.
In October 2023, these companies allowed an increase in wholesale prices for chicken eggs from 31 % to 40 % compared to September, while reducing the weighted average cost of production.
The authority opened a case against the companies on grounds of abuse of dominant position*.
Voronezh OFAS revealed a one-time increase in prices for chicken eggs from the companies Bobrovskaya Poultry Farm LLC, Zabrodenskoye Agricultural Enterprise LLC, Ryaba LLC and the agricultural production cooperative producing chicken eggs under the Tretyakovskaya Poultry Farm brand.
In October 2023, companies allowed an increase in weighted average wholesale selling prices from 16 % to 37 % for chicken eggs compared to September.
Ivanovo OFAS Russia revealed a one-time increase in prices for chicken eggs on the part of producers JSC Kineshemskaya Poultry Farm and LLC Ivanovo Poultry Farm.
In October 2023, companies allowed an increase in weighted average wholesale selling prices from 18 % to 23 % for chicken eggs compared to September.
Also, the Donetsk OFAS Russia recorded a one-time increase in prices for chicken eggs from the companies Novoazovskaya Poultry Farm LLC, Proletarskaya Poultry Farm LLC, Zugressky Reproductor LLC, Amvrosievskaya Poultry Farm LLC.
In October 2023, companies allowed an increase in weighted average wholesale selling prices from 9 % to 24 % for chicken eggs compared to September.
Voronezh, Ivanovo and Donetsk OFAS Russia initiated cases against companies on the basis of cartel agreements**.
If violations are established as part of the consideration of antimonopoly cases, companies face turnover fines in accordance with the Code of Administrative Offenses of the Russian Federation***.
"FAS Russia closely monitors the pricing of chicken eggs. As a result of checking the economic justification of prices and actions of companies, we see that in some cases, price increases are not due to economic reasons, but occur, among other things, as a result of agreements between business entities. If facts of such behavior of market participants are revealed, our territorial departments initiate cases on grounds of violation of the Law on Protection of Competition. Now there are 6 such regions - Kirov, Kemerovo, Voronezh, Ivanovo regions and a number of others. The work continues", noted Maxim Shaskolsky, head of FAS Russia.
* Paragraph 1 of Part 1 of Article 10 of the Law on Protection of Competition
** Paragraph 1 of Part 1 of Article 11 of the Law on Protection of Competition
*** Article 14.32 Code of Administrative Offences of the Russian Federation