• Does the owner of the Biedronka chain use unfair practices in relations with suppliers of food products?
• UOKiK has initiated proceedings in this matter.
• The entrepreneur might face a fine of up to 3% of its turnover.

In June 2019, UOKiK conducted an inspection of Jeronimo Martins Polska (JMP). The information and documents obtained during the inspection allowed the Office to level a charge of unfair use of contractual advantage against the company.

The information collected showed that JMP receives two types of discounts in its relations with suppliers, in particular with fruit and vegetables’ suppliers. The first of these discount is set out in the contract as a percentage and applies when previously determined value of turnover (sales to Biedronka) is exceeded. It is the second discount that the Office has reservations about. Firstly, Biedronka’s suppliers do not know its amount, and secondly they to give such a discount by suppliers is punishable by a contractual penalty.

In our opinion, the owner of Biedronka stores has violated good practices and taken advantage of a weaker party to the contract. Jeronimo Martins Polska has a stronger negotiating position and we suspect that it is using it unfairly. As a result of its practices, suppliers of food products, mainly fruit and vegetables suppliers, are not sure whether they will have to give an additional discount or how big it will be. Thus, when entering into a contract, they do not know how much they will earn. Our action aims at improving the situation of farmers. It should be remembered that forcing discounts by sales network may put great financial pressure on them, says President of the Office of Competition and Consumer Protection, Marek Niechciał.

The fine for unfair use of contractual advantage may amount up to 3% of company’s annual turnover.

Additional information for the media:

UOKiK Press Office
Pl. Powstańców Warszawy 1, 00-950 Warszawa, Poland
Phone +48 695 902 088, +48 22 55 60 246
E-mail: biuroprasowe@uokik.gov.pl
Twitter: @UOKiKgovPL