Russia Accuses BelAZ of Breaking Law on Competition
22.05.2012 / 18:0
When supplying BelAZ dump trucks to Russia, the Belarusian Company coordinated its dealers’ activities, which led to the restriction of competition, said Russia’s FAS.
The Federal Antimonopoly Service (FAS) of Russia accused the Belarusian Automobile Plant in violation of the law “On Protection of Competition.” When supplying BelAZ dump trucks to Russia, the Belarusian Company coordinated its dealers’ activities, which led to the restriction of competition, said Russia’s FAS.
The grounds for legal action were the statement of one of BelAZ dealers — Company BelAZkomplekt plus, FAS informed. Russia’s FAS revealed a strict separation of BelAZ dealerships on a territorial basis. Although the provisions on territorial restrictions were previously excluded from the dealership agreements, the facts indicate that the territorial principle is currently valid for sales, FAS noted.
There’s information about the territory activity of each dealer on the official site of BelAZ. A dealer has no right to supply products outside this territory, FAS reports.
Russia's FAS Commission also states the facts of BelAZ mailing letters to consumers stimulating to purchase products from specific dealers who have been granted such a right. Otherwise BelAZ would give up guaranteeing delivery and maintenance of its equipment. FAS reports that the receipt of these letters has been confirmed by the Russian consumers of BelAZ products.
According to the FAS, there are facts of BelAZ dealers’ mailing to consumers with refusals to deliver products outside the specified territory.
Deputy head of Russia’s FAS industrial control and defense industry Andrey Greshnev says that the practice of sales, prohibiting BelAZ dealers to supply products and participate in the bidding outside their territory deprived them of opportunity to compete among themselves. This, in turn, limited the consumer to choose suppliers of BelAZ purchased products.