"We have difficulties with purchasing not only fiber optics,
Posted: Wed Jan 22, 2025 6:21 am
Yesterday, on the day the antimonopoly service published the sad news, representatives of Corning CIS LLC, the Russian subsidiary of Corning Inc, did not answer ComNews' calls.
The lawyer noted that the company may refrain from commenting until a common legal position and line of defense are developed within the framework of the investigation that the FAS is launching.
but with any purchases. And the antimonopoly service has recently been working hard to identify cartels. The 2021 Plenum of the Supreme Court placed the burden of el salvador whatsapp number database proving all legally significant signs of a cartel on it - the presence of collusion, participants, goals and other circumstances. The FAS, like the Federal Tax Service (FTS), has interdepartmental agreements under which they act together with law enforcement agencies, tax authorities and other government agencies," the ComNews interlocutor comments.
Despite the prolonged legal pressure, there are no signs that Corning Inc will leave Russia. All the company's actions, even the violation of antitrust laws, were aimed at strengthening its position in our country, against the backdrop of growing competition from China. Another sign that Corning Inc is staying is the fact that it paid a fine in an amount that is almost twice the company's losses in Russia for the previous reporting period (28.4 million rubles).
This financially confirmed desire to stay in Russia is supported by Corning's 24 years of experience in our market. The company regularly pays taxes, according to the Federal Tax Service, has not reduced its staff over the past three years and is not included in the register of unscrupulous suppliers (according to the Federal Antimonopoly Service). The company's revenue in 2022 amounted to 494 million rubles. Corning has not seen a net profit since mid-2019 - another argument in favor of the version that the company is kept in Russia not by earnings, but by the desire to maintain market share.
Mikhail German suggested that the company would change its policy in order to remain in the country: "Russia is a large fiber optic market. The place of the departed company is immediately taken by a Chinese manufacturer. There is a trade war between China and the United States for the consumer, and I believe that Corning will most likely make a strategic decision to remain in our market, but will adjust its supply activities. Yes, foreign companies usually do not dispute fines imposed by government agencies. This is a feature of their mentality. But by paying the fine, the manufacturer acknowledged the fact of eliminating competition from domestic manufacturers, which is a violation of Russian legislation and is unacceptable from the point of view of the country's economic security."
"Against the backdrop of import substitution, the blatant facts of infringement of domestic producers that have come to light could not but attract the close attention of the FAS. The scandal would not have been so noticeable if at least a small share of supplies had been left to them. Just yesterday, the company was successfully selling its products without worrying about competition, but today it has found itself in the position of "elusive Joe" - an easily replaceable player, who has also failed the judge, for whose place several Chinese manufacturers are ready to fight and offer better conditions," summed up Mikhail German.
Lawyer, economist, member of the committee of the Chamber of Commerce and Industry of Russia on entrepreneurship in the sphere of media communications Pavel Katkov believes that, despite the “mentality”, an appeal can be expected from Corning.
"On the one hand, this is a confrontation between a Russian manufacturer and an American one, in which the former asks for help from the FAS and receives it. However, the dispute is old, it goes back to 2019, so it can be called pre-sanction. But the decision of the fined company will have to be challenged in the current "sanction reality". And then the question will arise whether Corning has left the territory of the Russian Federation or continues to operate? According to the FAS, the money is already in the budget, which means that the company apparently has accounts in the Russian Federation, which indicates that it is conducting business. This means that we will most likely have to wait for an appeal. However, the chances of its satisfaction in the current legal reality are slim for the American manufacturer," Pavel Katkov believes.
The lawyer noted that the company may refrain from commenting until a common legal position and line of defense are developed within the framework of the investigation that the FAS is launching.
but with any purchases. And the antimonopoly service has recently been working hard to identify cartels. The 2021 Plenum of the Supreme Court placed the burden of el salvador whatsapp number database proving all legally significant signs of a cartel on it - the presence of collusion, participants, goals and other circumstances. The FAS, like the Federal Tax Service (FTS), has interdepartmental agreements under which they act together with law enforcement agencies, tax authorities and other government agencies," the ComNews interlocutor comments.
Despite the prolonged legal pressure, there are no signs that Corning Inc will leave Russia. All the company's actions, even the violation of antitrust laws, were aimed at strengthening its position in our country, against the backdrop of growing competition from China. Another sign that Corning Inc is staying is the fact that it paid a fine in an amount that is almost twice the company's losses in Russia for the previous reporting period (28.4 million rubles).
This financially confirmed desire to stay in Russia is supported by Corning's 24 years of experience in our market. The company regularly pays taxes, according to the Federal Tax Service, has not reduced its staff over the past three years and is not included in the register of unscrupulous suppliers (according to the Federal Antimonopoly Service). The company's revenue in 2022 amounted to 494 million rubles. Corning has not seen a net profit since mid-2019 - another argument in favor of the version that the company is kept in Russia not by earnings, but by the desire to maintain market share.
Mikhail German suggested that the company would change its policy in order to remain in the country: "Russia is a large fiber optic market. The place of the departed company is immediately taken by a Chinese manufacturer. There is a trade war between China and the United States for the consumer, and I believe that Corning will most likely make a strategic decision to remain in our market, but will adjust its supply activities. Yes, foreign companies usually do not dispute fines imposed by government agencies. This is a feature of their mentality. But by paying the fine, the manufacturer acknowledged the fact of eliminating competition from domestic manufacturers, which is a violation of Russian legislation and is unacceptable from the point of view of the country's economic security."
"Against the backdrop of import substitution, the blatant facts of infringement of domestic producers that have come to light could not but attract the close attention of the FAS. The scandal would not have been so noticeable if at least a small share of supplies had been left to them. Just yesterday, the company was successfully selling its products without worrying about competition, but today it has found itself in the position of "elusive Joe" - an easily replaceable player, who has also failed the judge, for whose place several Chinese manufacturers are ready to fight and offer better conditions," summed up Mikhail German.
Lawyer, economist, member of the committee of the Chamber of Commerce and Industry of Russia on entrepreneurship in the sphere of media communications Pavel Katkov believes that, despite the “mentality”, an appeal can be expected from Corning.
"On the one hand, this is a confrontation between a Russian manufacturer and an American one, in which the former asks for help from the FAS and receives it. However, the dispute is old, it goes back to 2019, so it can be called pre-sanction. But the decision of the fined company will have to be challenged in the current "sanction reality". And then the question will arise whether Corning has left the territory of the Russian Federation or continues to operate? According to the FAS, the money is already in the budget, which means that the company apparently has accounts in the Russian Federation, which indicates that it is conducting business. This means that we will most likely have to wait for an appeal. However, the chances of its satisfaction in the current legal reality are slim for the American manufacturer," Pavel Katkov believes.