Medical Equipment Market Participants’ Cartel Exposed in EAEU

| By | Cartel Agreements, EAEU, FAS Russia

Under the frame of the investigation by the Eurasian Economic Commission, FAS inspected “Delrus” CJSC suspected of an anticompetitive agreement between participants of the cross-border market of medical equipment.

For the first time, the Competition and Antimonopoly Regulation Block of the Eurasian Economic Commission exposed a fact of an anticompetitive agreement between participants of EAEU cross-border market.

At the beginning of 2018, the Ministry of National Economy of the Republic of Kazakhstan filed a statement to the Commission about possible signs of violating the rules of competition by “Delrus” on the cross-border market.

In the course of the investigation carried out by EEC Antimonopoly Regulation Department it was established that using the dominant position on the market of medical equipment maintenance “Delrus” and “Delrus RK” made arrangements on geographic market division.

EEC managed to establish that the claimant – “Scuderia” of Kazakhstan was intended to acquire services on calibrating ultra-sound Fibroscan sensors from “Delrus” of Russia. The application was rejected and offered to approach “Delrus RK” of Kazakhstan, where such service costs 2.5 times higher.

EEC Collegium ascertained an anticompetitive agreement between the above companies. It is corroborated, for example, by the refusal of Russia “Delrus” to provide calibrating service to the consumer from Kazakhstan to the benefit of a competitor from Nur-Sultan despite a possibility to render the service. The competitors were aware of each other’s operations, were communicating in writing and redirected buyers to suppliers of services in accord with the geographic principle of are servicing.

Based on the Decision of EEC Collegium, the participants of the anticompetitive agreement are fined around 500,000 RUB. Such fines are imposed upon General Director of “Delrus” CJSC and General Director of “Delrus RK” Ltd.

Head of FAS Anti-Cartel Department Andrey Tenishev said:

“This is an example of efficient interaction with the Competition and Antimonopoly Regulation Block of the Eurasian Economic Commission when national antimonopoly bodies inspected economic entities in their countries. FAS inspected “Delrus” CJSC of Russia and apart from materials for EEC, exposed elements of violating the competition law within the boundaries of the Russian Federation”.

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