04 June 2015, 21:48 / Business

Tatarstan FAS recognized the collusion of networks in the price of buckwheat

Each network faces a turnover fine of up to 5 million rubles Anastasia Demidova Prices for buckwheat in the region increased from November 1-10, 2014 by 18%, and by November 20 the increase reached 54% / Alexander Ryumin / TASS

The Office of the Federal Antimonopoly Service (UFAS) for Tatarstan found the structures of retailers X5 Retail Group, Magnit, Auchan and Zelgros guilty of price collusion, the department said in a statement.

The OFAS commission decided that CJSC Trading House Perekrestok and LLC Agrotorg (part of X5), CJSC Tander (Magnit), LLC Zelgros and LLC Auchan violated the law “On the Protection of Competition” and were involved in price collusion, which led to a sharp increase in prices for buckwheat in Tatarstan in November 2014 - January 2015.

All major retailers in Russia will introduce price freezes

FAS does not object to the idea itself

The Tatarstan OFAS carried out an unscheduled inspection of producers, suppliers and sellers of buckwheat in December 2014 after a sharp increase in prices for grain. According to Tatarstanstat, prices for buckwheat in the region increased from November 1-10 by 18%, and by November 20 the increase reached 54%.

Representatives of the companies then told the regulator that they were forced to agree on new prices with suppliers under the threat of refusal to supply, according to the materials of the Federal Antimonopoly Service. The department also involved suppliers in the case (Mistral Trading, Agro-Alliance, etc.), but did not reveal any violations. The Federal Antimonopoly Service also suspected Metro Cash and Carry of involvement in the conspiracy, but did not reveal any violations.

An administrative case will be initiated against the structures of the retailers X5 Retail Group, Magnit, Auchan and Zelgros; they may receive fines in the amount of 10-15% of buckwheat sales in the region for the period of violation, a representative of the department told Vedomosti. The maximum fine for each company can be no more than 5 million rubles, suggests Mikhail Burmistrov, general director of Infoline Analytics.

Previously on the topic: Grocery chains are faced with a shortage of buckwheat

X5 Retail Group will appeal the decision of the Federal Antimonopoly Service in court, says a representative of the retailer. According to him, the share of buckwheat in turnover is minimal and amounts to 0.2% in Tatarstan for the group.

Auchan also does not agree with the decision of the Federal Antimonopoly Service and will challenge it, said Auchan representative Maria Kurnosova. According to her, Auchan has repeatedly complained about price increases by suppliers without economic justification to both the FAS and the Ministry of Industry and Trade, but has never received a response.

The Zelgros press service refused to comment on the situation until receiving an official document from the Federal Antimonopoly Service; the Magnit press service did not respond to a request.