Rise in prices noted by local utilities in Krasnodar region
The Federal Antimonopoly Service (FAS) of Russia is currently investigating two waste collection companies, LLC "Waste Collection Company" and JSC "Waste Collection Company," based in Krasnodar, for potential collusion in public area cleaning contracts.
The investigation, which was initially reported by "Live Kuban," aims to establish facts of competition restriction in the allocation of orders for comprehensive maintenance of urban territories in Krasnodar. The FAS suspects that these companies may have operated as a single entity, potentially controlled by one individual, and artificially inflated prices in tenders held from 2022 to 2024.
If the Krasnodar waste companies are found guilty, they will face administrative responsibility under current legislation, which could result in fines that may reach up to 10% of their annual turnover in Russia. The total value of contracts where signs of cartel agreement have been identified exceeds 4.7 billion rubles.
The FAS investigation into the Krasnodar waste companies is a continuation of their ongoing investigation into potential collusion between LLC "Waste Collection Company" and JSC "Waste Collection Company." If violations are confirmed, the companies will face fines for their involvement in a cartel and their cartel pricing activities.
While specific details about the ongoing FAS investigation into collusion among public area cleaning companies in Krasnodar, including potential fines or the total value of the contracts involved, are not widely available, the FAS frequently investigates cases of collusion or cartel agreements where companies unlawfully coordinate to fix prices or divide markets in public procurement contracts. Such investigations typically focus on firms involved in municipal services like public area cleaning.
For authoritative details, it is recommended to monitor official FAS press releases, Russian business news outlets, or regional Krasnodar news sources for updates on this investigation.
The FAS investigation is also examining potential price manipulation in the waste collection industry within Krasnodar, a suspected result of these companies functioning as a single entity in the finance sector. If proven, the firms may be penalized under Russian law for their business practices that restrain competition in the allocation of public area cleaning contracts.
The FAS further investigates instances where companies in the municipal services sector like public area cleaning collaborate to fix prices or divide markets, an activity that is seen as a cartel and is subject to fines and legal penalties.
