Thursday, March 11, 2010

FAS accuses the sole manufacturer of aluminum cans in Russia in the abuse of dominant position

Friday, October 9, 2009, 14:15
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Federal Antimonopoly Service (FAS Russia) initiated a case against businesses owned by a group of companies Rexam (United Kingdom) - the world's largest manufacturer of packaging products made of aluminum, the only manufacturer of aluminum cans in Russia.

In particular, as reported in the press release, the FAS Russia initiated a case against a group of individuals consisting of OOO Rexam Beverage Can Naro-Fominsk, LLC Rexam Beverage Can Vsevolozhsk and LLC Rexam Beverage Can Dmitrov on grounds of abuse of dominant position (part 1 of article 10 of the Federal Law On Protection of Competition), said in a press release of FAS.

Service conducted an analysis of the economic performance of these enterprises, as well as an analysis of prices in 1 half of 2009. for aluminum cans, supplied to the group of companies Rexam to the main consumers. The results showed that different consumers for the same kinds of enterprise group of companies Rexam set different prices, and do not in proportion to the volume of purchased products.

establishment of companies of various prices for the products of the same costs for different consumer products brewer could lead to an increase in the cost of not only packaging but the product itself and as a result of a discriminatory conditions for consumers in the domestic market.

Earlier FAS Russia granted the motions of the company Rexam Beverage Can Holdings BV the acquisition of control over the enterprises engaged in production of aluminum cans - OOO Rostar and LLC Rostar-Vsevolzhsk.

As a result, the commission said the transaction group of companies Rexam has become a dominant market position of aluminum cans in Russia with a market share of over 90% of the company Rexam Beverage Can Holdings BV been issued an order of the commission of acts aimed at ensuring competition.

According to the requirements of the company Rexam Beverage Can HoldingsB.V. to meet the needs of all buyers of aluminum cans and lids to them on the market of Russia with adequate capacity and willingness of consumers to pay for aluminum cans and lids for them. In addition, prices for aluminum cans and lids for them should be increased by not more than 15% per year for 10 years from the date of the transaction, according to a press release service.
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