VERBA LEGAL Secures Russian FAS Finding of Unfair Competition Against a Competitor of the Client — Ozon Pharmaceuticals Group

The Federal Antimonopoly Service of Russia (FAS) has found that the actions of a pharmaceutical manufacturer constituted a violation of Russian antimonopoly law. VERBA LEGAL represented the interests of the applicant, Atoll, a company belonging to the Ozon Pharmaceuticals Group, throughout the proceedings.

The dispute arose from letters sent by a competing pharmaceutical company to pharmacy chains. The letters alleged that Atoll was infringing the competitor’s exclusive rights in products intended to support the immune system. These actions caused financial losses and damaged the client’s business reputation in its relationships with key pharmacy retail partners.

Following its review of the complaint, the FAS issued a warning to the competitor requiring it to cease actions that discredited Atoll. As the warning was not complied with within the prescribed period, the FAS initiated proceedings, found the company to have violated antimonopoly law and issued a binding order requiring it to remedy the violation. The company is required to stop disseminating inaccurate information, withdraw the letters previously sent and publish a correction on its official website. The case materials have also been forwarded for the initiation of administrative proceedings. The FAS will monitor compliance with the order.

“In cases of this kind, the wording of the letters being circulated is crucial. Rights holders may submit such letters to the FAS as cease-and-desist letters, which are not prohibited by law. However, the language used in such letters must be conducive to reaching a pre-trial settlement,” said Alexey Darkov.

The VERBA LEGAL team working on the matter comprised Counsel Alexey Darkov and Senior Associate Maria Moish.