ST.-PETERSBURG, August 30 - RAPSI. The St. Petersburg and Leningrad Oblast Commercial Court has mandated a reduction of the fine imposed by the Federal Antimonopoly Service on Baltika Breweries for breaching competition law in the one-liter can market from $3 million to $346,000, the Supreme Commercial Court reports on its website.
The reasons for this decision has not yet been announced.
Earlier, Baltika's complaint to quash the watchdogs resolution, dated April 12, 2011, was shelved until its dispute with the service has been considered by the Moscow Commercial Court, which subsequently approved a settlement between them.
Meanwhile, the major aluminum can producer Rexam Beverage Can Naro-Fominsk and the watchdog have failed to settle their dispute over the service's fine imposed on them.
The parties have, however, signed a fact-finding agreement.
Rexam admitted in the agreement that it had breached antitrust law, while the watchdog agreed that all of the violations have been resolved. The parties also agreed that Rexam's fine might be lowered significantly.
On the basis of the agreement, the Moscow Commercial Court dismissed Rexam's petition to invalidate the watchdog's decision and decreased the fine from 84 million rubles ($2.6 million) to 11.73 million rubles ($365,500).
The service found on December 17, 2010, that Baltika and Rexam Beverage Can Naro-Fominsk impermissibly entered into an agreement, whereby the can manufacturer agreed not to sell one-liter aluminum cans to other customers in Russia, Belarus, or Ukraine. Additionally, Baltika Brewery was entitled to approve purchasers of Rexam's one-liter cans. According to the service, the agreement between the companies violated competition law. It ordered the companies to rectify the violation.
Baltika has been the leading brewery in Russia since 1996. It also produces a wide range of consumer goods. Baltika operates 11 breweries in Russia and one brewery in Azerbaijan. It owns over 40 brands.
Rexam Beverage Can Holdings B.V. is the major aluminum can manufacturer in the world.
