The Fifth Arbitration Court of Appeal upheld the decision of the first instance arbitration court of appeal in antimonopoly case on a dispute between Nakhodka Commercial Sea Port (NCSP) and Primorsky region Antimonopoly Service. The lower court found the seaport party violated the antimonopoly legislation.
The Antimonopoly Office of the Primorsky Krai after its audit at the seaport of Nakhodka, "filed a antimonopoly case for violation of antitrust laws on grounds of breach of Part 1, of article 10 of the Federal Law N135-FL. The company had violated the law, the Agency said, by setting the port’s tariffs for the cargo handling and other services, a subject to federal government regulation, as well as by establishing discriminatory conditions in contracts for cargo handling operations at transshipment of import and export cargoes.
The regional antimonopoly agency decided the company had breached the law according to paragraphs 6, 8, part 1 of article 10 of the Federal Law N135 and found the NCSP had abused it’s dominant position by unjustified establishment of different prices on the handling of transshipment export and import cargo. The port authorities created discriminatory conditions in the contracts in terms of establishment of different penalties rates for payments delays by contractors for services rendered, and imposing penalties for cargo handling exceeding the rates established by the federal legislation for the so called natural monopolies, this infringing the economic interests of consumers.
The agency issued an order and suggested the company violating the antimonopoly legislation to bring the contracts for services for transshipment of export and import cargoes, which include penalties for late contracting services for cargo handling, in accordance with paragraph 5 of the RF Government Decree N576. Also, the order read, when entering into contracts for cargo handling operations of export and import cargoes to apply the basic rates approved by the appropriate regulatory agencies for the NCSP as the a natural monopoly.
The company disputing the decision of the Primorsky Antimonoply agency, directed an appeal to the Fifth Arbitration Court of Appeals.
"Having considered all the submitted materials of the case, the panel recognized the verdict of the court of first instance grounded that the use of the company’s different rates of penalties for payments delays by contractors for services rendered is de facto the establishment of discriminatory conditions for counterparties in these contracts," the regional antimonopoly service said.
Nakhodka Commercial Sea Port JSC is the major stevedore company at the port of Nakhodka.The port is part of Evraz Group and is the point of seaborne cargo shipment, produced by the Group's subsidiaries, to Asia regions. The port’s throughput in 2008 reached 15.2 million tons. Sibmetinvest LLC is the sole shareholder of the company.
The Antimonopoly Office of the Primorsky Krai after its audit at the seaport of Nakhodka, "filed a antimonopoly case for violation of antitrust laws on grounds of breach of Part 1, of article 10 of the Federal Law N135-FL. The company had violated the law, the Agency said, by setting the port’s tariffs for the cargo handling and other services, a subject to federal government regulation, as well as by establishing discriminatory conditions in contracts for cargo handling operations at transshipment of import and export cargoes.
The regional antimonopoly agency decided the company had breached the law according to paragraphs 6, 8, part 1 of article 10 of the Federal Law N135 and found the NCSP had abused it’s dominant position by unjustified establishment of different prices on the handling of transshipment export and import cargo. The port authorities created discriminatory conditions in the contracts in terms of establishment of different penalties rates for payments delays by contractors for services rendered, and imposing penalties for cargo handling exceeding the rates established by the federal legislation for the so called natural monopolies, this infringing the economic interests of consumers.
The agency issued an order and suggested the company violating the antimonopoly legislation to bring the contracts for services for transshipment of export and import cargoes, which include penalties for late contracting services for cargo handling, in accordance with paragraph 5 of the RF Government Decree N576. Also, the order read, when entering into contracts for cargo handling operations of export and import cargoes to apply the basic rates approved by the appropriate regulatory agencies for the NCSP as the a natural monopoly.
The company disputing the decision of the Primorsky Antimonoply agency, directed an appeal to the Fifth Arbitration Court of Appeals.
"Having considered all the submitted materials of the case, the panel recognized the verdict of the court of first instance grounded that the use of the company’s different rates of penalties for payments delays by contractors for services rendered is de facto the establishment of discriminatory conditions for counterparties in these contracts," the regional antimonopoly service said.
Nakhodka Commercial Sea Port JSC is the major stevedore company at the port of Nakhodka.The port is part of Evraz Group and is the point of seaborne cargo shipment, produced by the Group's subsidiaries, to Asia regions. The port’s throughput in 2008 reached 15.2 million tons. Sibmetinvest LLC is the sole shareholder of the company.