Federal Antimonopoly Service Uncovers 5 Price-Fixing Agreements
26 January 2018 (09:25)
UrBC, Yekaterinburg, January 26, 2018. Sverdlovsk Oblast's division of Russia's Federal Antimonopoly Service uncovered five price-fixing arrangements on the local markets last year. Thirteen legal entities had to face administrative liability, Head of the division's Antitrust Enforcement Department Ekaterina Vorobieva said at a recent press conference in Yekaterinburg.
According to Vorobieva, two price-fixing agreements had to do with supplying surgical suture materials and two more with highway construction and repair. Yet another arrangement was related to catering services for foreign nationals and apatrides.
'The most common price-fixing scheme is when two legal entities agree to have one company make a bid at an auction that brings the price down as low as possible (by as much as 90%). This means other companies that are not in the know will decide not to make their bids, since the contract turns inexpedient, money-wise. Then, the highest bidder's offer gets rejected because of a (knowingly made) mistake in the papers. Which results in the second company in the cartel agreement winning in the auction,' says Vorobieva.
According to Vorobieva, two price-fixing agreements had to do with supplying surgical suture materials and two more with highway construction and repair. Yet another arrangement was related to catering services for foreign nationals and apatrides.
'The most common price-fixing scheme is when two legal entities agree to have one company make a bid at an auction that brings the price down as low as possible (by as much as 90%). This means other companies that are not in the know will decide not to make their bids, since the contract turns inexpedient, money-wise. Then, the highest bidder's offer gets rejected because of a (knowingly made) mistake in the papers. Which results in the second company in the cartel agreement winning in the auction,' says Vorobieva.
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