FAS Russia lawfully fined “MOESK” OJSC

On 26th May 2009, Moscow Regional OFAS Russia established the fact of violating Part 1 Article 10 of the Federal Law “On Protection of Competition” (abusing market dominance on the market for technological connection of energy-receiving devices of legal entities and physical persons to electric grids) and imposed a RUB 45,365,060 turnover fine upon “MOESK” OJSC.
Moscow Regional OFAS Russia received a complaint from Mr. V. Gavrilov regarding “MOESK” OJSC.
Investigating the complaint, Moscow Regional OFAS Russia established that from 23rd May 2007 to 2nd February 2009 “MOESK” OJSC unreasonably evaded entering into a contract for technological connection of a residential house referring to technical limitations of capacity of their power supply equipment. At the same time, when the application was filed, the power grid facilities of “MOESK” OJSC were included in an investment programme, which proves technical possibility for technological connection and constitutes the grounds for concluding a technological connection contract.
“MOESK” OJSC filed a lawsuit to Moscow City Arbitration Court trying to invalidate the decision of Moscow Regional OFAS Russia.
On 10th March 2010 Moscow City Arbitration Court allowed the claim; which was upheld by the ruling of the 9th Arbitration Appeal Court of 30th June 2010.
The Antimonopoly Service disagreed with the judicial acts and lodged a cassation appeal to the Federal Arbitration Court of the Moscow District, asking to reverse the judgment and the ruling in question taking into account inconsistency between the judicial conclusions and the circumstances of the case and incorrect application of substantive legal provisions.
The Federal Arbitration Court of the Moscow District confirming legitimacy and reasonableness of the decision and determination issued by the office of the Federal Antimonopoly Service in the Moscow region regarding “MOESK” OJSC.