Federal Antimonopoly Service has specified criteria of inadmissible coordination of dealers Federal Antimonopoly Service (FAS) has found the machinery manufacturer violating antitrust legislation

According to its official web site on 17th of May 2012 FAS has found OJSC BelAZ guilty of violation p. 5 of art. 11 of the Federal Law No. 135 – FZ On Protection of Competition by illicit coordination of dealers in the Russian Federation.

FAS has investigated the case and found that the manufacturer has appointed specific territory for each dealer. FAS has determined that despite of the fact that relevant restrictive contractual provisions were excluded from the dealership agreements, the following facts evidenced that the territory allocation was still in place:

• Publishing on official web site information regarding each dealer’s territory and prohibition to supply products outside this territory.

• Informing customers that they can buy products from dealers acting in the particular territory.

• Distribution of letters to customers indicating necessity to buy products from the particular dealers; issuance of written permissions for supply.

• Dealers’ written refusals to sell the products to customers outside their sales territory.

Pursuant to p. 5 of art. 11 of the Federal Law No. 135 – FZ On Protection of Competition individuals, commercial and non-commercial entities are not allowed to coordinate other business entities, if such coordination leads or may lead to the implications enlisted in p. 1-3 of this article (e.g. territory allocation).

In the absence of court decisions on the case it is feasible to consider the directions given by FAS to minimize possible antimonopoly risks.

Additional notes

Should any questions arise in connection with the above or if you need any additional materials, please contact Irina Akimova or Julia Borisova, Moscow Office of Capital Legal Services.

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