OREANDA-NEWS. December 07, 2011. The Federal Arbitration Court of the Volga-Vyatka Region found that “Vladimir Bread-Making Plant” OJSC and “Vyaznikovo Bread-Making Plant” OJSC and upheld a determination issued by the Office of the Federal Antimonopoly Service in the Vladimir region (Vladimir OFAS Russia), reported the press-centre of FAS Russia.

In August 2010, bread makers fixed and maintained bread prices.

On 27th September 2010, the Commission of Vladimir OFAS Russia found that bread-making plants violated Clause 1 Part 1 Article 11 of the Federal Law “On Protection of Competition”, issued a determination to stop the violation and fined bread-makers over 6.8 million Rubles.

“Vyaznikovo Bread-Making Plant” OJSC executed the determination of the antimonopoly body and paid the fine. “Vladimir Bread-Making Plant” OJSC filed a lawsuit challenging OFAS decision.

Vladimir Regional Arbitration Court found conclusions of Vladimir OFAS Russia unlawful.

However, the First Arbitration Appeal Court and the Federal Arbitration Court of the Volga-Vyatka Region supported the position of Vladimir OFAS Russia.

“It is very important for us that the Courts of two Instances accepted Commission’s conclusions that simultaneous and synchronized fixing and maintaining bread prices by “Vladimir Bread-Making Plant” OJSC и “Vyaznikovo Bread-Making Plant” OJSC in August 2010 was a result of concerted actions”, commented the Head of Vladimir OFAS Russia, Mr. Vladimir Solovyev.

Reference:

Under Part 1 Article 14.32 of the Code of the Russian Federation on Administrative Violations, if an economic entity concludes an agreement prohibited by the antimonopoly law of the Russian Federation, or participates in it, or if an economic entity exercises concerted actions prohibited by the antimonopoly law of the Russian Federation, it is punished by an administrative fine: upon officials – 20,000 – 50,000 Rubles, or disqualification for the period of up to three years; for legal entities – from one hundredths to fifteen hundredths of the income of the violator from selling goods (works, services), on the market where the administrative violation was committed, but no less than 100,000 Rubles, and if the income of the violator from selling goods (works, services) exceeds 75% of the total income of the violator from selling goods (works, services) – from three thousands to three hundredths of the total income of the violator from selling goods (works, services) n the market where the administrative violation was committed,but no less than 100,000 Rubles.