The Federal Arbitration Court of the Central District confirmed that “Tambovnefteproduct” CJSC abused market dominance

Февраля 09, 2011

The Federal Arbitration Court of the Central District in Bryansk reversed the judgment of the Tambov Regional Arbitration Court and the ruling of the 19th Arbitration Appeal Court and, therefore, confirmed legitimacy of the decision issued by the Office of the Federal Antimonopoly Service in the Tambov region (Tambov OFAS Russia) regarding “Tambovnefteproduct” CJSC.

The oil company fixed and maintained monopolistically high prices for motor petrol and diesel fuel in the Tambov region.
On 6th November 2009, the antimonopoly body found that “Tambovnefteproduct” CJSC violated Clause 1 Part 1 Article 10 of the Federal Law “On Protection of Competition” and upon establishing the fact of the violation fined the company 17,891,000 Rubles.
The case was initiated upon the situation with prices at the end of 2008 – beginning of 2009. The Commission of Tambov OFAS Russia established that retail prices for oil products set by “Tambovnefteproduct” CJSC exceeded the sum necessary to cover the expenses and gain profit. At the same period the oil company increased the retail mark-up for the oil products by more than three times (from 26 to 97%).