OREANDA-NEWS. March 14, 2011. The Federal Arbitration Court of the Moscow District confirmed validity of the decision and determination issued by the Federal Antimonopoly Service (FAS Russia) regarding “TekhnoNIKOL”- Stroitelnie Sistemy” Ltd., reported the press-centre of FAS Russia.

On 20th January 2010, FAS Russia found that “TekhnoNIKOL”- Stroitelnie Sistemy” Ltd. violated Part 3 Article 11 of the Federal Law “On Protection of Competition”.

The case was initiated upon the findings of a scheduled inspection carried out by FAS Russia in 2009.

“TekhnoNIKOL”- Stroitelnie Sistemy” Ltd. has the dominant position on the market of coil roofing and waterproof materials within the boundaries of the Russian Federation and sells its products through the company’s own trading network or its dealers.

In course of the antimonopoly investigation FAS Russia discovered that “TekhnoNIKOL”- Stroitelnie Sistemy” Ltd. had controlled pricing and fixed reselling prices for the distributed materials. Dealers were held financially responsible for failure to observe the prices.

“TekhnoNIKOL”- Stroitelnie Sistemy” Ltd. disagreed with the decision and determination issued by the Antimonopoly Service and filed a lawsuit to the Moscow Arbitration Court and the 9th Arbitration Court, which invalidated actions undertaken by FAS Russia.

However, FAS Russia challenged the Court rulings at the Federal Arbitration Court of the Moscow District.

On 3rd March 2011, the Court pronounced legitimacy of the FAS Russia’s decision and determination and reversed the rulings of the Courts of lower instances.

“The Court of First Instance and the Appeal Court stated that establishing the fact of coordinating economic activities the antimonopoly authority must analyse the market and prove concerted actions between coordinated entities, while prohibiting coordination and concerted actions constitute two independent violations. Therefore, the ruling of the Cassation Court is of principal importance for us as it resolves the issue”, commented the Head of the FAS Russia’s Department for Industry and Defence Complex, Maksim Ovchinnikov.

Reference:

Part 3 Article 11 of the Federal Law “On Protection of Competition” prohibits physical persons, commercial organisations and non-commercial organisations to coordinate economic activities of business entities.