News about competition law from ART DE LEX

The 30 December Competition Law Newsletter,from ART DE LEX, includes a number of important news items in five different categories:

Recent Events in Russian Competition Law

• Law 343-FZ, of 4 November 2014, amended Law 57 of 2008 that enhances the monitoring of foreign investments in companies that the Russian government has designated as having strategic significance for national defense and security. The newsletter includes a link with further details about the amendments.
• On 23 October, the State Duma adopted the fourth legislative package of amendments to the Federal Competition Support Law, No. 135, of 26 July 2006, and other laws. It promotes competition, strengthens antitrust measures, limits administrative interference in markets, and decreases the administrative burden on businesses. The newsletter includes a link with further details about the amendments.
• The Federal Antimonopoly Service (FAS) has opened proceedings against four major oil companies–ANK Bashneft JSC, Rosneft JSC, Lukoil JSC, and Lukoil-Reservneft Product LLC–it accuses of stock market manipulations. The case began with an inquiry into price increases for gasoline. Kirill Dozmarov, of ART DE LEX, commented on the proceedings.
• Russian Railways JSC ended restrictions not covered under the law on cargo shipments and rolling stock in order to be in compliance with FAS recommendations. A complaint of Ural Steel JCS about Russian Railways’ refusal to ship certain types of cargo prompted the FAS to consider the case.

News about Competition Litigation and Administrative Disputes

• The Supreme Court of the Russian Federation reduced a FAS penalty on Russian Railways that amounted to RUB 2 million, claiming that it was excessive.
• The Ninth Arbitration Court upheld a FAS decision that penalized Aushan LLC for charging the producers of milk and milk products different fees for the same services to increase its sales of dairy products. Aushan LLC now faces fines of RUB 62 million.
• In late November, the Moscow Arbitration Court dismissed the claim of SK Torgovlya LLC that Metro Cash & Carry LLC had different charges for identical services. The court found no evidence that there was any discrimination against SK Torgovlya’s fish and fish products in the promotional services of Metro Cash & Carry LLC. Furthermore, the court noted that the claimant mainly was dissatisfied about the price

Noteworthy Foreign Cases

• In the United States, Apple settled a class-action lawsuit for USD 450 million in a case that claimed Apple colluded with publishers to fix e-book prices, adding USD 2-3 per book on 23 million readers. The settlement will depend on the outcome of an appeal that Apple took to the US Court of Appeals, which will decide the case in 2015.
• The European Commission penalized Deutsche Telekom and its subsidiary, Slovak Telekom, more than EUR 70 million for blocking internet access in Slovakia for a period of five years. The fine included nearly EUR 31 million against Deutsche Telekom because of similar infractions in the past.

Legislative Projects

• Amendments to Federal Law 126-FZ, of 7 July 2003, limit technological and technical discrimination in services and software applications.
• Amendments to Federal Law 135-FZ, of 26 July 2006, offer alternative compensation to individuals from firms that violated antimonopoly laws during the sale of products. Instead of seeking compensation through the Civil Code of the Russian Federation, the consumer now can receive 1-15 percent of the cost of the product.
• Russian Federal Decree 1072, of 18 October 2014, sets the costs of assets and the total costs of financial organizations that are to be included on balance sheets for the last reporting date preceding a FAS request for approval of transactions in accordance with Articles 27 and 29 of the Competition Support Law.

FAS Decrees

• Decree 627/14 of 8 October 2014 improves the system of providing financial aid to farmers that will promote competitiveness in 2014-2015.
• FAS issued a departmental decree concerning the processing of applications and references in human resources departments to prevent corruption and illegal activities on the part of FAS officials.
• FAS issued a departmental decree on the procedure of processing complaints regarding the actions or failure to act when customers purchase goods, work, or services.

The entire Competition Law newsletter is at http://artdelex.ru/eng/reviews/competition-law-71923.

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