New antitrust law mechanisms in action: Russian antitrust body issued administrative writs to a foreign company

Russian antitrust authority issued administrative writs to a non-Russian company to stop actions that may be in breach of antitrust law.

On June 26, 2012 the Russian antitrust authority – the FAS – issued to Edwards Lifesciencies S.A. (Switzerland) two administrative writs to cease actions/inaction that may be in breach of antitrust law, in accordance with Article 39.1 of the Federal Law No.135-FZ “On protection of competition” dated 26.07.2006.

The FAS found Edwards Lifesciencies S.A. violating the following:

• Edwards Lifesciencies S.A. was imposing on MK UNIX, LLC disadvantageous conditions in an addendum to an international distributor agreement;

• Refusal by Edwards Lifesciencies S.A. to enter into a direct distributor agreement with Green Medica, LLC.

The administrative writs are to be fulfilled by July 16, 2012. The FAS must be notified of fulfillment within three days from the time the set term expires. In case of failure to fulfill the administrative writs in time, the FAS will initiate proceedings regarding abuse of dominant position.

The administrative writ was introduced in January 2012 and gives the FAS powers to address prohibitions to dominant companies whose actions/inaction may be in breach of antitrust law, prior to initiating formal proceedings. In the event the administrative writ is fulfilled, antitrust proceedings will not be initiated and the potentially defaulting party shall not be liable under antitrust law.

Thus, the FAS has confirmed that provisions of Russian antitrust law shall apply to actions of foreign entities or organizations if such actions affect the competition in the Russian Federation.

Additional notes

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