Cartel collusion detected in biddings for illumination of buildings around Kremlin

Cartel collusion detected in biddings for illumination of buildings around Kremlin
Kremlin at night

The Moscow department of the Federal Antimonopoly Service found signs of violation of the antimonopoly legislation following the results of an audit.

A criminal case has been initiated against Agentstvo razvitiya perspektivnykh tekhnologiy (‘Agency for Advanced Technology Development') JSC and Prime Service LLC on grounds of violation of antimonopoly legislation. The case was initiated by the Moscow department of the Federal Antimonopoly Service after finding signs of cartel collusion in the biddings for the art illumination of buildings around of the Kremlin and the lighting of transport interchanges on Kashirskoe and Novorizhskoe highway in Moscow.

As reported on the agency's website, the cartel agreement led to the price fixing at the biddings, the customer of which was the Department of Fuel and Energy of Moscow.

The Federal Antimonopoly Service department representatives noted that the total initial maximum price for four auctions exceeded 625 million rubles ($10.8 million). After submitting one or more price offers, Agency for Advanced Technology Development and Prime Service refused to participate in the further competition. As a result, the price reduction at the biddings was from 1% to 5% of the initial contract price.

It is reported that the Federal Antimonopoly Service department detected the complete identity of documents in the applications of both companies, the coincidence of names and file headers. Moreover, the files had been saved one after another with a difference of a few seconds. The information on specifications of the offered goods in the bids was also the same.

In this regard, the regulator found signs of violation under paragraph 2 part 1 of Article 11 of the Law on Protection of Competition in the companies' actions.

 

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