OREANDA-NEWS. July 27, 2011. The 1st Arbitration Appeal Court pronounced legitimacy of the decision made by the Office of the Federal Antimonopoly Service in the Vladimir region (Vladimir FAS Russia) about imposing an administrative fine upon “SMU-19” Ltd. and “Kuban” Construction Company” Ltd. for bid-rigging, reported the press-centre of FAS Russia.

The Commission of Vladimir FAS Russia found that “SMU-19” Ltd. and “Kuban” Construction Company” Ltd. violated Clause 2 Part 1 Article 11 of the Federal Law “On Protection of Competition”. The antimonopoly body established that concerted actions of “SMU-19” Ltd. and “Kuban” Construction Company” Ltd. resulted in maintaining prices in course of an open auction for repair works in “Kovrovo Social Nursing Home for Elderly and Disabled Persons”. The overall auction sum was nearly two million Rubles.

Vladimir FAS Russia issued a determination to hold “SMU-19” Ltd. and “Kuban” Construction Company” Ltd. administratively liable under Part 1 Article 14.32 of the Code of the Russian Federation on Administrative Violations. The fine is around 133,000 Rubles.

The companies filed lawsuits challenging the determination of the antimonopoly body.

Vladimir Regional Arbitration Court and the 1st Arbitration Appeal Court pronounced legitimacy of the conclusions made by Vladimir FAS Russia.

“This is the first positive experience of our Office in recognizing concerted actions in course of public auctions”, confirmed by Arbitration Courts of the First and Appeal Instances”, commented the Head of Vladimir FAS Russia, Mr. Vladimir Solovyev.