OREANDA-NEWS. December 20, 2010. The Federal Antimonopoly Service (FAS Russia) initiated a case against the “Association of Operators of Alcohol Market of the Orenburg Region” Non-Commercial Organization (further on referred to as the Association) upon the signs of violating Part 3 Article 11 of the Federal Law “On Protection of Competition” (coordinating activities of economic entities), reported the press-centre of FAS Russia.

In the FAS Russia’s opinion, actions of the Association restricted competition on the market of vodka, and particularly resulted in fixing and maintaining prices.

During an extended period of time (since 2006) the Association has held meetings involving companies that sell vodka in the Orenburg region. Decisions made at these meetings and by the Association Board fixed minimum and maximum wholesale and retail prices for vodka depending on its producer.

For instance, the minimum price for vodka produced outside the Orenburg region was set at a higher level than for local vodka, which created obstacles to market entry of vodka producers located in other constituent territories of the Russian Federation.

FAS Russia also initiated a case against 34 members of the Association upon the signs of violating Part 1 Article 11 of the Federal Law “On Protection of Competition”.

Economic entities concluding the agreements “On the principles of vodka trade in the Orenburg region” and “On interaction and cooperation in the alcohol market” is an example of a classic cartel collusion of market participants.

Under Article 14.32 of the Code on Administrative Violations, participation in cartels is punishable by turnover fines.