Russian Suppliers of Narcotic Tests Refused to Compete

| By | Cartel Agreements, FAS Russia

Moscow OFAS exposed a cartel formed by the participants of 70 e-auctions for supplying tests for exposing narcotic agents. The total initial maximum contract price was over 115.3 million RUB.

Two Moscow companies – “DIATEST” Ltd. and “EXTRATEST” Ltd. – took part in the auctions throughout a year. The ordering parties at the auctions were narcotic clinics, psychiatric clinics and forensic medical examination bureaus all over Russia.

Based on the auction results, “EXTRATEST” entered into 34 contracts for the total amount 37 million RUB and “DIATEST” won 36 auctions for 77 million RUB. The initial maximum contract price reduced by 1%.

Moscow OFAS established that the suppliers used a common infrastructure and jointly prepared for the auctions.

Cartel participants refused to compete, which artificially maintained auction prices. As a consequence, narcotic agent toolkits were supplied to public medical facilities in 22 cities of Russia at overrated prices,

pointed out Head of Moscow OFAS, Armen Khanyan.

OFAS found that the companies violated Clause 2 Part 1 Article 11 of the Federal Law “On Protection of Competition”. Part 2 Article 14.32 of the Code of the Russian Federation on Administrative Violations specifies liability for anticompetitive agreements: an administrative fine for up to 50% of the initial auction price for legal entities and up to 50,000 RUB for companies’ top executives.

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