OREANDA-NEWS. September 30, 2011. The Arbitration Court confirmed legitimacy of the decision and determination issued by Federal Antimonopoly Service (FAS Russia) to “Izhevsky Mechnichesky Zavod” Federal State Unitary Enterprise and “Izhevsky Arsenal” Ltd. on a case on violating the antimonopoly law on the market of non-military weapons in the Russian Federation, reported the press-centre of FAS Russia.

On 17th February 2011, the FAS Commission found that “Izhevsky Mechnichesky Zavod” Federal State Unitary Enterprise and “Izhevsky Arsenal” Ltd. violated Part 2 Article 11 of the Federal Law “On Protection of Competition”. The entities concluded an agreement about the exclusive right of “Izhevsky Arsenal” Ltd. to purchase МR-654К gas-cylinder pistols.

The case was initiated upon a petition of “Kornet” Ltd. and “T.P.Artur” Ltd. that Izhevsky Mechnichesky Zavod” Federal State Unitary Enterprise refused to conclude a contract for supplying the goods.

Investigating the case, the FAS Commission established that “Izhevsky Mechnichesky Zavod” Federal State Unitary Enterprise and “Izhevsky Arsenal” Ltd. had concluded a contract for supplies of sporting and hunting firearms, duty weapons pneumatic, gas-cylinder and self-defence weapons and spare parts, tools and accessories for them.

The organisations also signed an additional agreement to the contract that prohibited wholesale sales of МR-654К gas-cylinder pistol and its modifications to other legal entities except “Izhevsky Arsenal” Ltd.

Having examined the case materials, the FAS Commission concluded that actions of “Izhevsky Mechnichesky Zavod” Federal State Unitary Enterprise and “Izhevsky Arsenal” Ltd. could have resulted in preventing, restricting or eliminating competition on the market of non-military weapons in the Russian Federation, in particular, unreasonable refusal of “Izhevsky Mechnichesky Zavod” Federal State Unitary Enterprise to conclude contracts with potential buyers of МR-654К gas-cylinder pistols.

Reference:

1. Part 2 Article 11 of the Federal Law “On Protection of Competition” prohibits agreements between economic entities or concerted actions of economic entities if such actions lead or can lead to restricting competition.

2. By a FAS order, Izhevsky Mechnichesky Zavod” Federal State Unitary Enterprise is included in the Register of economic entities that control over 35% of the markets of particular goods, services - on the market of products, design of which is similar to weapons, wholesale sales with market share over 35% within the geographic boundaries of the Russian Federation. МR-654К gas-cylinder pistol and its modifications have design similar to weapons.