OREANDA-NEWS. April 19, 2013. The Federal Arbitration Court of the Povolzhie region (Kazan) confirmed legitimacy of the decision of the Office of the Federal Antimonopoly Service (FAS Russia) in the Ulyanovsk region (Ulyanovsk OFAS Russia) that the Government of the Ulyanovsk region and “Elektronny Ulyanovsk” Regional State Budgetary Institution violated the antimonopoly law. The Courts of three instances also recognized legitimacy of the determination to fine one of Deputy Chairmen of the Government of the Ulyanovsk region 20,000 Rubles for committing the violation.

Earlier, the Commission of Ulyanovsk OFAS Russia investigated the case initiated upon the materials forwarded from the Prosecutor’s Office of the Ulyanovsk region, and revealed that the Government of the Ulyanovsk region violated Clause 4 Article 16 of the Federal Law “On Protection of Competition” acting under an agreement restricting access of economic entities on the market of geoinformation technologies and services.

OFAS issued a determination to “Elektronny Ulyanovsk” to stop violating the antimonopoly law – terminate the \\$300 million contract concluded with an economic entity without tendering procedures.

“Elektronny Ulyanovsk” attempted the challenge the decision and determination through judicial procedures; however, the Arbitration Court of the Ulyanovsk Region, the 11th Arbitration Appeal Court, and then the Federal Arbitration Court of the Povolzhie District confirmed legitimacy and reasonableness of the above acts of Ulyanovsk OFAS Russia.

“The contract was signed without any tendering procedures, after meetings with representatives of the Government of the Ulyanovsk region, “Elektronny Ulyanovsk” and the executing company. However, contract works must be procured in compliance with the law on state procurement. It is very important that the Courts of three instances confirmed legitimacy of our decision and determination to impose the fine”, pointed out the Head of Ulyanovsk OFAS Russia Gennady Spirchagov.

Reference:

1. Clause 4 Article 16 of the Federal Law “On Protection of Competition” prohibits agreements between federal executive bodies, the authorities of the constituent territories of the Russian Federation, local self-government bodies, other bodies and organizations exercising the functions of the above bodies as well as state extra-budgetary funds, the Central Bank of the Russian Federation or between them and economic entities, or exercising concerted actions by these organs and organizations if such agreements or concerted actions lead or can lead to preventing, restricting, eliminating competition, in particular, restricting market entry / exit or pushing economic entities from the market.