2 Oct 2009 13:05

Nokia decides against following FAS recommendations for distribution - FAS

MOSCOW. Oct 2 (Interfax) - Nokia, the world's leading producer of cellular telephones, has admitted violations of competition regulations in is implementation of its Nokia Upstream product distribution system in Russia, the Russian Federal Antimonopoly Service (FAS) said.

The FAS said that Nokia, in additional agreements with distributors, recommended retail prices for its products, which, according to the agency, could qualify as a cartel agreement on the cellular market.

The FAS opened a case against Nokia regarding this violation of antimonopoly legislation. However, the company declined to follow the agency's recommendations. As a result, the FAS closed its case. Nonetheless, Nokia still faces the threat of fines but their size has been reduced, the FAS said.

According to the Nokia Upstream program, Nokia was in control of wholesale and retail prices. In its violation of FAS recommendations, the company deprived distributors of bonuses or completely halted deliveries. In addition, Nokia denied distributors the right to have operations with other producers, the FAS said.