Skip to content

Sanatorium "Serehovo" has acted in an anticompetitive manner within the car rental market.

Institution Under Scrutiny for Monopolistic Tactics in Contract Awards, Possible Breach of Anti-Trust Laws

Sanatorium "Serehovo" illegally monopolized the car rental market
Sanatorium "Serehovo" illegally monopolized the car rental market

The Lowdown on Sanatorium Serego's Debacle

Sanatorium "Serehovo" has acted in an anticompetitive manner within the car rental market.

In the picturesque Republic of Komi, the UFAС got wind of a complaint lodged by LLC "Alfo-center" against GU K "Sanatorium Serego". The trouble? A procurement fiasco involving the chartering of a passenger vehicle with a driver.

The initial agreed-upon price was a hefty 2,008,000 rubles. The beef? The auction docs spelled out a specific GAZ-3221 ride, leaving no room for alternatives.

Upon investigation, it became clear that other vehicles — GAZ of various models, Ford Transit, Fiat, and even Mercedes vehicles — could've fit the bill. They all complied with the requirements (at least 8 seats for passengers, additional cabin heater, and a production year no later than 2011).

The sanatorium's actions essentially crushed the competition in the procurement bash. Fun fact: only one bid was thrown into the ring, and a contract was signed with the sole participant.

Bottom line: Sanatorium Serego breached the Competition Protection Law. The antimonopoly authorities are now pondering whether to slap some administrative sanctions on the folks responsible.

Potential Slap-On-the-Wrist Penalties

Under Russian administrative laws governing procurement and competition (Federal Law No. 44-FZ on the contract system and Federal Law No. 135-FZ on protection of competition), potential penalties could include:

  1. Fines:
  2. Officers responsible might be hit with fines ranging from 10,000 to 50,000 rubles.
  3. The sanatorium as an organization could face fines that run from 100,000 rubles to several million rubles, depending on the degree of wrongdoing.
  4. Cancellation of Procurement Results:
  5. The procurement process results could be nixed to level the playing field.
  6. Disqualification:
  7. The responsible procurement officers may be temporarily banned from future procurements.
  8. Compensation and Restorative Measures:
  9. The sanatorium may be forced to compensate affected parties or make amends to remove competition constraints.
  10. Additional Sanctions:
  11. Persistent violations might lead to more severe consequences, like administrative or criminal charges depending on the damaging effects and intent.

In the realm of industry and business, potential sanctions for Sanatorium Serego's breach of the Competition Protection Law might involve administrative fines for the responsible officers ranging from 10,000 to 50,000 rubles, or a more substantial penalty for the sanatorium itself that could amount to several million rubles. Additionally, the sanatorium may face the cancellation of the procurement results or even a temporary disqualification of its procurement officers from future bidding processes. Consequently, the sanatorium might also be compelled to compensate affected parties or take restorative measures to remove any competition constraints. Persistent violations could potentially lead to more severe consequences, such as administrative or criminal charges.

Read also:

    Latest