“FAS has suspected “AVTOVAZ” in coordinating dealer price for maintenance

– The Federal Antimonopoly service of Russia opened in respect of PJSC “AVTOVAZ” the case of violation of the Antimonopoly legislation in connection with identified signs of coordination among official dealers of the company on maintenance (THAT) of cars.

“They (the signs – if) seen in the information letters to the heads of the enterprises of the dealer network with an indication of calculating the cost of maintenance and final price posted on the dealer portal,” according to the website of the Ministry.

By results of check of activity of “AVTOVAZ” FAS came to the conclusion that part of the authorised dealers is guided in its activities by the prices recommended by the carmaker that could lead to the establishment and maintenance of prices for services.

The proceedings in respect of “AVTOVAZ” is scheduled for may 14.

It is reported that as at 12 September last year, 290 dealers not part of the same group of persons with JSC “AVTOVAZ” and, thus, can be seen as coordinated entities.

According to the Agency, “AVTOVAZ” from may 2016 to may 2017 posted on the dealer portal, a series of information letters about increasing the number of machinization on IT and change its value, addressed to the heads of authorized dealers. In accordance with the dealer agreement “AVTOVAZ” has the right to pay the dealer premium for the fulfilment of “certain conditions”.

“The need to bring price maintenance in the dealer centers in accordance with recommended adjustments to the work of the service centers due to the obligation of dealers to participate in promotions and to fulfill all the conditions of the shares to receive the awards recorded in the dealer agreement, – stated in the materials. Thus, the non-participation in actions referred to in newsletters, the dealer actually loses the ability to compete with dealers participating in the shares of PJSC “AVTOVAZ”.

According to FAS, stimulation of AVTOVAZ its dealers through promotions, while eliminating competition among dealers led to the creation of conditions that compel dealers to follow the price of maintenance, set “AVTOVAZ”.

In a press-service of AVTOVAZ refused to comment.

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