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EEC investigates violation of general competition rules in the cable products market

EEC investigates violation of general competition rules in the cable products market

8/5/2019
The Department for Antitrust Regulation of the Eurasian Economic Commission (EEC) has launched an investigation on the signs of a possible violation of the general rules of competition prohibited by paragraph 2 of Article 76 of the Treaty on the Eurasian Economic Union (EAEU).

This spring, the Commission received an application from “Rezhevskoy Cable Plant”, LLC (Russian Federation) regarding possible signs of unfair competition in the actions of members of the  Association of Cable Industry Enterprises “Belkabel” (Republic of Belarus).

According to the materials provided, the Association sent an information letter to potential buyers of Rezhevskoy plant’s products containing distorted information. According to the applicant, it misleads consumers with regard to the quality of its products, damages the business reputation of the plant, and hinders the conclusion and execution of contracts, the development of business relations and market-driven promotion of its products.

In order to restore the general rules of competition on the transboundary market, the EEC Antitrust Regulation Department has developed a draft Proposal to eliminate signs of violations and to restore competition. The document was agreed with the antitrust authorities of the EAEU countries, however, the applicant and potential defendants did not reach mutual agreement on the project and the actions to be performed.

Since the parties did not reach an agreement, the Commission launched an investigation in accordance with the Procedure for considering applications on violation of the general rules of competition on transboundary markets approved by the EEC Council in 2012.