OREANDA-NEWS. April 23, 2010. The Moscow Arbitration Court dismissed the claim of the Russian Union of Auto Insurers on invalidating and overruling the decision and determination of the Federal Antimonopoly Service (FAS Russia), reported the press-centre of FAS Russia.

On 4th August 2009 FAS Russia found that the Russian Union of Auto Insurers violated Part 3 Article 11 of the Federal Law "On Protection of Competition". The Presidium of the Union and the General Meeting of the members of the Union passed a decision violated the law by aimed at coordinating of economic activities of insurance companies - orchestrating coordinated actions of insurance companies that are not members of the group of persons with the Russian Union of Auto Insurers. Coordination procedures resulted in fixing the rates for the broker services for selling policies of Mandatory Civil Liability Motor-Vehicle Insurance (OSAGO).

The Union decision to set a maximum broker commission for completing an OSAGO agreement not only limits insurers' possibilities to compete for this important sales channel but also restricts competition between brokers as they are unable to receive a higher commission from an insurer if they improve the quality of their services.

Making its decision, FAS Russia took into consideration that brokers provide an important channel for selling OSAGO policies of those insurers who do not have a developed branch network. Failure to execute the above decision of the Union would bring sanctions upon the Union members to the extent of being excluded from the Union. If such sanctions were applied an insurer would be deprived of a possibility to operate on the OSAGO market.

Discovering the fact of violation FAS Russia issued a determination to the Russian Union of Auto Insurers to exercise actions aimed at protection of competition: abolish the relevant decisions of the Presidium of the Union and the General Meeting of the members of the Union.

The Union disagreed with the decision and determination issued by the Antimonopoly Service and filed a lawsuit.

On 15th April 2010, the Moscow Arbitration Court dismissed the claim of the Russian Union of Auto Insurers in full.