News (#03 March 2016)

AMCU

Investigation of price collusion in oil products market

The Antimonopoly Committee of Ukraine proceeded with consideration of a case on the grounds of the carrying out of anticompetitive concerted practices by operators of the light oil retail market.

While average retail prices for diesel oil were falling during the mentioned period, the average retail prices for А-95 gasoline remained virtually unchanged during the last 4 months. As of 19 January 2016 prices for А-95 gasoline ranged from UAH 18.00 per liter to UAH 20.99 per liter.

At the same time, during the last months of 2015 through the beginning of 2016, the market-leading economic entities were establishing and maintaining the same prices for top-bracket gasoline, in particular, for А-95 gasoline at the level of UAH 20.99 per liter. This price level was the highest and exceeded the indicative retail price at fuel filling stations in the second third of January 2016, which is estimated at UAH 19.67 per liter by the Ministry of Energy and Coal Industry.

The AMCU said that the actions of the aforementioned market operators might lead to restriction of competition in the light oil retail markets. The consideration of the case in violation of legislation of Ukraine on protection of economic competition was initiated by a special order.

Currently, the Committee is collecting and analyzing evidence in the case, particularly regarding requirements to provide information for sending to the respondents in the case.

 

AMCU decided to penalize Russia’s Gazprom

On 12 February the AMCU sent to PJSC Gazprom (Russian Federation) a resolution on a fine amounting to about UAH 86 billion in the case on violation of legislation on the protection of economic competition.

The AMCU has considered the relevant case and based upon its results has passed a judgment by which it declared that between 2009 and November 2015 Gazprom enjoyed a monopoly on the national market of natural gas transit services via main pipelines through Ukraine. The nature of the violation was determined as abuse by a buyer of a monopoly on the market of services of natural gas transit via main pipelines passing through Ukraine.

In addition to the decision on imposing a fine, which Gazprom has to pay within 2 months, the AMCUhas bound the company to cease the mentioned violation within two months. Gazprom has defied the judgment passed by the AMCU.

 

Distort competition in the security services market

The AMCU has started studying of the competitive environment in the security services market and the influence on it by the Decree of the Cabinet of Ministers On Issues of Ensuring Security of State-Owned Property and Property of other Forms of Ownership of 11 November 2015, No. 937.

By its Decree the Cabinet of Ministers has approved the list of items of state-owned property and property of other types of ownership, the security of which may be ensured solely by the State Guard Service at the Ministry of Internal Affairs.

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