Reaction of companies that were fined by Competition Council for cartel agreements

Representatives of the four companies that were recently fined for cartel agreements when setting the prices of phytosanitary products deny the accusations made by the Competition Council and say that these are groundless. Moreover, they accuse the Council’s head Marcel Raducan of a conflict of interests. According to them, the family members of Raducan are majority shareholders in a limited liability company specialized in phytosanitary products and fertilizers, IPN reports.

In a news conference, Victor Cucu, manager of the company “DiazChim”, said the fine imposed on them is of over 28 million lei. “DiazChim” SRL has never been involved in any carter agreement and the Competition Council’s conclusions are groundless, being based on an absolutely subjective perception of the Council. The investigations were launched based on an order of July 16, 2020, which was signed by the Council’s head Marcel Răducan. The inspections were also carried out based on orders signed by Răducan.

“Namely Marcel Răducan, through the agency of his family – wife, parents and children – owns and is the beneficiary of a commercial organization whose declared activities include the import, storage and sale of phytosanitary products and fertilizers on the territory of the Republic of Moldova. This company is “Moldprodinvest” SRL whose majority associates includes the family members of the Competition Council’s head,” said Victor Cucu. According to him, the National Integrity Authority was notified of this.  

Igor Tagadiuc, who manages the company “Agrostoc”, said there was no cartel agreement between the companies indicated by the Council. The investigation conducted by the Competition Councils showed lack of competent, profound and responsible involvement and the presented conclusions lack professional value. The goal is to manipulate public opinion, to damage their image and destroy the only entrepreneurs’ cooperative “Agrostoc”.

Dorin Ceban, vice director of the company “Bioprotect”, noted the Council’s decision will be challenged in court and they consider this will be annulled. The assertions made by the Council’s representatives are defamatory and there are sufficient proofs showing that those reports are untrue. It is not true that the products on the markets in Ukraine and Romania are sold at lower prices.

Roman Chetruș, the manager of SA “Fertilitatea-Chișinău”, said that attempts are made to concentrate the phytosanitary products by eliminating established payments from the market. The goal is to discredit the companies before clients and suppliers and to accumulate confidential information about the volume of sales, data about clients and suppliers, contracts, etc. The huge fines were imposed with the aim of pushing the companies towards insolvency, primarily during the agricultural season.

Last week, the Competition Council informed that four companies were fined 91 million lei in total for taking part in harsh cartel-type horizontal agreements based on continuous concerted practice aimed at setting selling prices and other trading conditions when selling phytosanitary products and fertilizers of two types to third parties on the county’s territory. It was determined that the given companies communicated and agreed the prices and some of the conditions of trading phytosanitary products to national agricultural companies. The prices of similar products sold in Ukraine and Romania are by 28-43% lower than in Moldova.

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