OREANDA-NEWS. On October 08, 2007 Federal Antimonopoly Service (FAS Russia) fined "RZhD" OJSC for 22 780 000 Rubles, reported the press-centre of FAS Russia.

Earlier FAS Russia found that "RZhD" OJSC violated Clause 5 Part 1 Article 10 of the Federal Law "On Protection of Competition"; however, the case proceedings were terminated due to voluntary elimination of the antimonopoly violation by "RZhD" OJSC.

The case against "RZhD" OJSC was initiated upon the petition of the "BALTIKA" Brewing Company and "Heineken Brewery" Ltd.; proceedings in the case involved the Union of the Russian Producers of Beer and Alcohol-Free Beverages.

"RZhD" OJSC, that has dominant position on the market of cargo transportation on the public railways, breached the law by unreasonably refusing to conclude an agreement with the "BALTIKA" Brewing Company and "Heineken Brewery" Ltd for transportation of pasteurized beer in the companies' own, leased covered cars in summer and should periods.

"RZhD" OJSC eliminated the antimonopoly violation by sending a telegram on creating special conditions for transportation of conserves, juices (sterilized, sulfited), syrups, fruit and vegetable drinks, alcohol-free and low-alcoholic beverages, pasteurized beer, mineral water, various wines (except champagne, sparkling and carbonated wine), ketchups, tomato puree, concentrated tomato, vegetable and fruit puree, compotes, jams, confiture, marmalade, and fruit butter in universal covered cars, with additional heat insulation according to the technology developed in GUP VNIAS of the Russian Ministry of Railways.

Having considered the case, however, FAS Russia established that "RZhD" OJSC carried out actions classified as abusing dominant position.

"RZhD" OJSC disagreed with the decision of the antimonopoly authority and appealed. The Court of three instances confirmed validity of the FAS Russia's decision.

Furthermore, according to the Federal Law "On Amendments to the Code of Administrative Violations of the Russian Federation", that entered into force on 13th May 2007, Article 14.31 of the Code creates administrative charges (fines) against an economic agent with dominant position on the goods market that carries out actions, which are recognized as abuse of dominant position and are unacceptable under the antimonopoly legislation of the Russian Federation. The fine amounts from a hundredth to 15 hundredths of the violator's proceeds from selling goods (works, services) on the market where the violation occurred, but no more that a fiftieth of the overall violator's proceeds from selling all goods (works, services).

Governed by Article 23.48, Part 1 Article 29.9, and Article 14.31 of the Code of Administrative Violations, FAS Russia imposed a fine upon "RZhD" OJSC " in the amount of 22 780 000 Rubles.

Deputy Head of FAS Russia, Anatoly Golomolzin said: "The Law on amendments to the Code of Administrative Violations provides for mitigating punishment for those companies that voluntarily eliminated violations or cooperated with the Antimonopoly Service in its investigation. We can see this on the example of "RZhD" OJSC. If "RZhD" OJSC did not voluntarily eliminate the antimonopoly violation, FAS Russia would impose more severe fines - around 100 mln Rubles".