FAS INITIATED A CASE IN RELATION TO ARKHANGELSK PULP AND PAPER MILL JSC

In 2023, the company increased by more than 40% the prices of cardboard and paper used for manufacture of corrugated cardboard

FAS Russia regularly monitors the situation in the market of paper products and components of its production. The Authority’s special attention is focused at companies that occupy a dominant position. Based on the results of the analysis of the state of competition, the Authority found that Arkhangelsk Pulp and Paper Mill JSC occupies a dominant position in the markets of cardboard and paper used for production of corrugated cardboard*. It is used for production of corrugated packaging for storage and transportation of food, medicines, building materials, furniture and household chemicals.

Monitoring conducted by the Authority showed that Arkhangelsk Pulp and Paper Mill increased the price of the corresponding products by more than 40% in the second half of 2023: from August to November 2023, the price increase for paper amounted to 42.3%, for cardboard – 41.4%. An analysis of business activity data showed that the prices set since September 2023 exceeded the amount of necessary expenses and profits.

The Authority initiated a case against the organization for violation of antimonopoly legislation**. In case of finding fault, Arkhangelsk Pulp and Paper Mill JSC faces a turnover fine in accordance with the Administrative Code of the Russian Federation.

The Authority will continue the economic analysis of the situation in the market of cardboard and paper used for production of corrugated cardboard. Requests about the reasonableness of the prices were sent to other major producers. If signs of abuse of market power on their part are identified, the issue of initiating cases of violation of antimonopoly legislation will also be considered.

Reference:

* in the markets of corrugated paper and cardboard for flat layers of corrugated cardboard made of primary cellulose fiber;                    

** on the grounds of violation of Paragraph 1 of the Part 1 of the Article 10
of the Law on Protection of Competition.