The reason for the court proceedings was the Western-Union agreement provision saying that the Russian banks, partners of the company, did not have the right to be partners of similar money transfer systems simultaneously.
According to the Federal Antimonopoly Service's conclusion, this way the company impedes the Russian money transfer systems development. Therefore, in September 2003 the Western-Union was ordered to remove the applicable provision from the agreements with the banks by November 10.
However, the company appealed against the order to the court. According to the appellant's lawyers, the company followed paragraph 2 Article 1007 of the Russian Civil Code, which stated that "an agency agreement can provide for the agent's obligation not to conclude similar agreements with other principals."
Besides, the company's representatives pointed out that the exclusivity provision was typical of not only the financial services sphere, but of other markets as well.
However, on April 7, 2004, the court disallowed the claim, upon which the Western-Union lodged an appeal. Today the appeal was dismissed as well.
