Economic Court of Kyiv recognized law violations on economic competition protection by the Ministry of Transport and Communications and others during the ban of escort of vessel “PREVENTER”

Economic Court of Kyiv declared violations of the law on protection of economic competition on the part of the Ministry of Transport and Communications of Ukraine, the State Enterprise “Mykolayiv Commercial Sea Port”, “Delta-pilot” and the captain of “Mykolayiv Commercial Sea Port” during the ban of escort of vessel “PREVENTER” to the berth of “NIBULON”. On the 22nd of February, 2011 Economic Court of Kyiv dismissed the claim of the captain of “Mykolayiv Commercial Sea Port” Ryabchykov P.S. and confirmed the legality of the decision of the Antimonopoly Committee of Ukraine dd. 21.09.2010 in case of law on protection of economic competition. In particular, the decision of the Antimonopoly Committee of Ukraine recognized that: 1. The State Enterprise “Mykolayiv Commercial Sea Port” (Mykolayiv) during 2009 and seven months of 2010 occupied the monopolistic (dominating) position on the port services market related to the performing functions of navigation safety within their own water area with its share of 100 percent. 2. “Delta-pilot” (Mykolayiv) during 2009 and seven months of 2010 occupied the monopolistic position on the national market of the pilot services and pilotage with its share of 100 percent. 3. Actions of the captain of “Mykolayiv Commercial Sea Port” Ryabchykov P.S., which consisted in refusal to approve an application for pilotage of vessel «PREVENTER» to the berth of “NIBULON”, banning of pilotage of the vessel to the berth of “NIBULON” in October 2009 by issuing of an order dd. 16.10.2009 № 45/2009 “Relative to the call of “PREVENTER”, and prohibition of navigation pass the first bend of the channel of water area of Mykolayiv port by vessels of CH-50 and CH-70 types from 11.05.2009 until the end of reconstruction and commissioning of the first bend of the channel of Mykolayiv port, stipulation of approval for vessel pilotage of «PREVENTER» to the berth of “NIBULON” by owner of the vessel «PREVENTER» assumption of additional obligations on compensation and providing of notarized and legalized letter of guarantee, agreed with insurance companies, is a violation provided for in paragraph 3 of Article 50, by the first paragraph of Article 15 of the Law of Ukraine “On Protection of Economic Competition”, as a commitment by administrative body of management and control of anticompetitive practices which could have led to restriction of competition on the national transshipment market. 4. Actions of “Delta-pilot”, which resided in actual refusal to provide pilotage services (rejection of applications for pilotage and directing of a pilot to the vessel «PREVENTER» in the period from October 2009 till 02.03.2010) is a violation provided for in paragraph 2 Article 50, the first paragraph of Article 13 of the Law of Ukraine “On Protection of Economic Competition”, as abuse of monopolistic (dominating) position in the pilotage services and pilotage of vessels market by commitment of actions that led to infringement of interests of the entity (“NIBULON”), which would be impossible provided that there was substantial competition in the market. 5. Inaction of the State Enterprise “Mykolayiv Commercial Sea Port”, which resided in improper maintenance of the navigation dimensions of the first bend of the channel of water area of Mykolayiv port, which led to a refusal to provide services of Sea Port for the navigation of  «PREVENTER» to the berth of “NIBULON” and stipulation of providing of port hydraulic structures in use by owner’s of the vessel «PREVENTER» assumption of obligations on compensation and providing of notarized and legalized letter of guarantee, agreed with insurance companies, is a violation provided for in paragraph 3 of Article 50, by the first paragraph of Article 13 of the Law of Ukraine “On Protection of Economic Competition”, as abuse of monopolistic (dominating) position on the port services market connected with administration of functions on ensuring safe navigation by commitment of actions that led to infringement of interests of the entity (“NIBULON”), which would be impossible provided that there was substantial competition in the market. 6. Actions of the Ministry of Transport and Communications of Ukraine, which did not provide full and comprehensive clarification of the case, proper evaluation and repeal of regulations as of 16.10.2009 № 45/2009 issued by the captain of Mykolayiv Commercial Sea Port Ryabchykov P.S., and regulations of 05.11.2009 № 50/2009, and non-act of the Ministry of Transport and Communications of Ukraine as to cancellation of anticompetitive practices of the captain of Mykolayiv Commercial Sea Port Ryabchykov P.S in terms of groundless rejection to approve applications for pilotage of the vessel «PREVENTER» to the berth of “NIBULON” and prohibition of pilotage of the vessel «PREVENTER» to the berth of “NIBULON” is a violation provided for in paragraph 7, Article 50, Article 17 of the Law of Ukraine “On economic competition protection” in the form of legitimizing of legislation violation on economic competition protection by authority of administrative management and control – the captain of Mykolayiv Commercial Sea Port Ryabchykov P.S. The State Enterprise “Mykolayiv Commercial Sea Port” was fined for violations in the amount of UAH 300 000, “Delta-pilot” was fined in the amount of UAH 30 000.

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