Russia’s OFAS Exposed Pharma Cartel

| By | Cartel Agreements, Russia

Based on the materials of the “For Fair Procurement” project of the United People’s Front, Rostov OFAS opened a case and recognized a fact of violating Clause 2 Part 1 Article 11 of the Federal Law “On Protection of Competition” by “Kuban’pharmacia” State Unitary Enterprise of the Krasnodar region. “Pharmservice” Ltd., “Pharmcentre” Ltd. and “Sevastopolpharmacia” Ltd. The companies concluded and implemented an anticompetitive agreement designed to maintain prices in the course of 31 electronic auctions of supplying medical products.

Following the decision, all legal entities – cartel members and their top executives are held administratively liable and punished by.

For instance, “Pharmservice” Ltd. is fined 50,105,875.08 RUB, “Kuban’pharmacia” – 49,755,230.6 RUB, “Pharmcentre” Ltd. must pay 10,342,078.13 RUB and “Sevastopolpharmacia” Ltd. – 4,750,601.09 RUB.

Head of FAS Anti-Cartel Department Andrey Tenishev emphasized:

“Punishment should commensurate with what is committed. That is why cartels are punished by big fines that depend on the scope and sum of violations. Also, case materials are transferred to the law enforcement bodies so they can open criminal proceedings for restricting competition”.

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