One of the main and most important areas of the Institute's of Compliance work is protection in cases of cartels and cases of other anticompetitive agreements.
Anticompetitive agreements, and the cartel, as one of the types of these agreements, are the most dangerous offenses against the market economy. The danger of cartels (national and transnational) is recognized all over the world. In many countries (including Russia), cartels are subject to administrative and criminal liability.
Administrative liability for companies is established in the form of "turnover fines" (up to 15% of revenue in the commodity market where the offense was committed) or up to 50% of the initial maximum price of the subject of tender (for bid rigging).
Top managers may be disqualified or arraigned on a criminal charge under Art. 178 of the Criminal Code. It should be noted that the acts falling under the signs of the offenses provided in Part 2 and Part 3 of Art. 178 of the Criminal Code are serious crimes, that allows to conduct operative investigations activities, including telephone conversations monitoring.
Nowadays several measures aimed to identify and suppress cartels have been taken on the state level.
Therefore, the qualified legal support on cartels (bid rigging) is objectively necessary not only to minimize financial risks of the company, but also for the personal safety of business owners and top managers.
Specialists of the Institute carry out "turn-key protection" for cartels, including:
- preliminary analysis of the situation, with an analysis of financial, reputational and personal risks;
- retrospective analysis of the company's activities for identifying signs of violations in the last three years, in order to minimize risks;
- development of recommendations and preparation of legal position for minimizing risks;
- preparation of applications to the FAS Russia, which are the basis for exemption from liability for the cartel (bid rigging);
- supporting during conducting inspections by the antimonopoly body;
- representation of the Client's interests in the FAS Russia during the investigation of cartel’s or other anti-competitive agreements cases;
- client's interests in the FAS Russia Appeal Board when appealing against the territorial bodies of the FAS Russia decisions;
- challenging against antimonopoly bodies decisions on cartel’s or other anti-competitive agreements cases in courts/
In addition, we provide services to persons who have suffered from the cartels activities.
These persons can be state organizations and corporations (who are customers at the tenders), private companies (bona fide bidders). Client protection from cartels and other anti-competitive agreements is as follows:
- conducting analytical work to identify signs of anticompetitive agreements (cartels) committed against customers by contractors / suppliers, identifying signs of cartels made against bona fide participants of the commodity market (bidding) by competitors;
- preparation of applications / appeals to the FAS Russia, law enforcement agencies, with the aim to suppress cartels and investigate offenses / crimes;
- support of submitted applications to the FAS Russia and law enforcement agencies;
- preparation and litigation support of private antimonopoly claims filed for the purpose of compensation the damage caused by the cartel.