The Department of the Agency for the Protection and Development of Competition (APDC) of the Kostanay region has concluded an investigation into 5 companies: BW-invest LLP, Sheber-SVT LLP, TochkaOpta LLP, DD and Company LLP and Reliable Partner 2017 LLP on suspicion of cartel collusion.
For reference: cartel collusion is an informal agreement among participants in the same market sector to sell goods or services at a set price. Cartel collusion also includes contractual regulation of procurement and sales volumes by market participants with the aim of influencing price levels.
According to the press service of the agency, the relevant signs were identified during these partnerships' participation in public procurement for the supply of steel pipes.
Following the investigation, administrative proceedings were initiated against the companies under Part 1 of Article 159 of the Administrative Offences Code of the Republic of Kazakhstan ("Monopolistic activities").
Ultimately, the specialised court for administrative offences held all participants in the cartel collusion accountable. The fine amounted to 18,267,173 tenge, with confiscation of monopoly income totalling 28,412,021 tenge.
At the same time, the participants in the cartel collusion were issued orders to prevent violations of legislation in the field of competition protection.
Recall that in May last year, KFK Medservice Plus LLP, Akniet LLP and Stopharm LLP were held administratively liable for participation in cartel collusion during the procurement of drug transportation and storage services. The procurement was carried out by SK-Pharmacy LLP.