FAS Establishes Fact of Regional Protectionism in Belgorod Region
OREANDA-NEWS. August 13, 2014. The Federal Antimonopoly Service (FAS Russia) investigated a case against “Dobrynya” Ltd. and found that the company violated Part 1 Article 10 of the Federal Law “On Protection of Competition” (abusing market dominance).
The company fixed different prices for the same goods without economic justification, and created certain market entry criteria, which formed unequal conditions for producers of alcohol products under the principle of territorial allegiance.
At FAS Expert Council representatives of business community complained about regional protectionism on the market of sales of alcohol products in the Belgorod region. Regional FAS Office (Belgorod OFAS Russia) verified the information and initiated a case against “Dobrynya” Ltd. for violating the antimonopoly law.
Belgorod OFAS Russia established the dominant position of “Dobrynya” Ltd. on the wholesale alcohol market in the Belgorod region. The company was selling alcohol products in the Belgorod region only upon voluntary certification, as a result of which from Q3 2012 (the date when voluntary certification started) a significant increase of mark-ups for alcohol products (vodka) brought in the region was observed in comparison with the products of Belgorod producers.
In June, Belgorod OFAS Russia transferred the case to the Central FAS Office.
The Commission meeting involved participation of Belgorod OFAS Russia through video-conferencing. Such format enabled respondents - “Dobrynya” Ltd. to take part in the Commission meeting at the place of their location and operation.
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