OREANDA-NEWS.  April 05, 2013. The Presidium of the Supreme Arbitration Court of the Russian Federation upheld the ruling of the 9th Arbitration Appeal Court (Moscow) on the case of the Federal Antimonopoly Service (FAS Russia) vs. “RSITs” CJSC (RU-center).

Earlier, on 16th March 2012 the Appeal Court supported FAS decision and determination regarding companies that register domain names in the ru. zone at the Internet, under which “RSITs” CJSC (RU-center) had obligated to return the income in the amount of 239 million Rubles to the state budget. The 9th Arbitration Appeal Court (Moscow) upheld Clause 2, 3 of the FAS decision regarding RU-center, confirming, therefore, that companies – registrars had violated Clause 5 Part 1 Article 11 и Part 1 Article 14 of the Federal Law “On Protection of Competition”.

On 1st July 2011, FAS made a decision on the precedent case regarding companies – registrars of domain names in the .ru zone at the Internet. FAS found that “RSITs” CJSC and “RSITs” Autonomous Non-Commercial Organization violated Articles 11 and 14 of the Federal Law “On Protection of Competition”.

The FAS Commission issued a determination to “RSITs” CJSC to transfer over 239 million Rubles to the budget of the Russian Federation as unlawfully gained income through the actions exercised by the companies.

In breach of Part 1 Article 14 of the Federal Law “On Protection of Competition”, “RSITs” CJSC registered over 70,000 domain names in the .ru zone, which should have been allocated between applicants according to the procedures of equal availability. By concluding and taking part in the agreement, “RSITs” CJSC and “RSITs” Autonomous Non-Commercial Organization were imposing disadvantageous contract conditions or conditions irrelevant to the contract subject upon their customers – physical persons and legal entities that wished to register domain names in the .ru zone.

According to the rules of the Coordination centre of the national domain at the Internet, any registrar was allowed to register no more than 4800 domains per hour (there are 21 companies that register domains). “RSITs” CJSC concluded customer agreements with a number of other registrars so they register domain names at “RSITs” CJSC as the administrator.

FAS also established that “RSITs” CJSC and “RSITs” Autonomous Non-Commercial Organization concluded an agreement, under which domain names were put on closed auctions. The income unlawfully obtained through the auctions was distributed between “RSITs” CJSC and “RSITs” Autonomous Non-Commercial Organization.

“RSITs” CJSC challenged the decision and determination issued by the Antimonopoly Service. Moscow Arbitration Court accepted the arguments put forward by the company and overruled FAS decision. However, the 9th Arbitration Appeal Court (Moscow) restored legal validity of FAS decision and determination.

“The case drew a significant response since it concerned the interests of numerous Internet users. The ruling of the Presidium of the Supreme Arbitration Court protected their interests as well as free competition”, pointed out Deputy Head of FAS Anatoly Golomolzin.

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After FAS made a decision regarding companies – registrars of domain names in the .ru zone at the Internet “RSITs” Autonomous Non-Commercial Organization was liquidated.