CASSATION UPHELD DECISION AND ORDER OF FAS RUSSIA IN RELATION TO BONOLIT

Earlier, the FAS Russia found the Bonolit group of persons guilty of setting and maintaining a monopolistically high price for aerated concrete blocks

The FAS Russia initiated a case against a group of persons of the Bonolit company*, which holds a dominant position with a share of more than 35% in the Central Federal District, as part of the work to verify the validity of setting prices for construction materials. The FAS Russia found that prices for aerated concrete blocks on the domestic market increased disproportionately to the companies’ expenses needed for their production and sale.

Following of the case review, the Bonolit group of persons was found guilty of violating the antimonopoly legislation**. The FAS Russia issued an order to organizations to take actions aimed at ensuring competition.

The Bonolit group of persons tried to challenge the decision and the order of the FAS Russia, but the courts of three instances upheld the position of the Service.

Reference:

* The group of persons of the organization includes Elgad-ZSI LLC, Bonolit Kaluga LLC, Dmitrovsky Aerated Concrete Products Plant JSC, ECO-Zoloprodukt Ryazan LLC, Bonolit - Construction Solutions JSC, AeroBel CJSC.

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