PKP Cargo will pay over PLN 50 million to the State budget for violating the antimonopoly law. The fine was imposed by the President of the Office of Competition and Consumer Protection in 2004

The case concerns a decision issued in June 2004, in which the President of UOKiK found PKP Cargo guilty of abusing its dominant position, ordered the company to cease the illegal practices and pay a fine of PLN 40 million. The antimonopoly proceedings had revealed that the long-term carriage contracts that the company had been concluding with its clients prevented the development of competition and imposed onerous terms on the contractors, providing PKP Cargo with unjustified benefits.

The company lodged an appeal against the decision of the President of UOKiK, however it was dismissed by the Court of Competition and Consumer Protection due to the company’s failure to correct formal omissions in the appeal. The decision has become legally binding and the company must pay the fine to the State budget - over PLN 51 million in total.

The Act on competition and consumer protection gives the President of the Office the power to postpone the deadline for paying a fine or allow for it to be paid in instalments. UOKiK took the arguments presented by the company into account and agreed for a payment in instalments. PKP Cargo had claimed that a one-time payment may cause it to lose its financial liquidity, as well as have a negative effect on the situation of the other companies of the PKP group, because PKP Cargo is the main client of many of them. The fine is going to be paid in 20 instalments of PLN 2 million each. The first payment has been made today together with over PLN 11 million of a prolongation fee resulting from the instalment payment arrangement.

This is not the only fine imposed by the President of UOKiK on PKP Cargo. In January 2004 the company was fined PLN 20 million for abusing its market position and treating its clients in an unjustifiably unequal way. Another PLN 10 million imposed in 2005 was the fine for violating the competition law by signing a privileged contract with one of the freight forwarders. The decisions are not final yet - the company has appealed to the Court of Competition and Consumer Protection.

Additional information:
Małgorzata Cieloch, Spokesperson for UOKiK
Pl. Powstańców Warszawy 1, 00-950 Warszawa
Tel. (+48 22) 827 28 92, 55 60 106, 55 60 314
faks (+48 22) 826 11 86
E-mail mcieloch@uokik.gov.pl