11.04.07

The State Duma accepted after a third reading amendments to the Administrative Code regarding violations of antitrust legislation. The Federation Council also officially approved the amendments.

According to the law, the maximum administrative penalty for antitrust violations could not exceed 1/25 of the amount of cumulative profits on sales of the product (goods and services) received during the previous calendar year before the violation occurred or for the part of the same calendar year before the violation if no activity was registered for the previous year.

The amendments, however, introduce a new article into the Administrative Code on "Misuse of a Dominant Market Status." Fines for this specific infraction are set thus: 150,000 – 200,000 RUR for company officers; for legal entities – one to fifteen percent of the cumulative profits on sales.

The legislation also makes provisions against using contracts to limit possible competition.

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