Acquisition of rights to broadcast public transmission of sports events must not be subject to the purchase of other products – decided the President of UOKiK and questioned the practices of Cyfrowy Polsat. The company has voluntarily undertaken commitments to remove lasting effects of the violation and to refrain from applying it in the future

In 2009 UOKiK issued 25 antitrust decisions imposing commitments on the undertakings to cease unlawful practice. In 2004-2008 UOKiK issued over 40 decisions regarding the infringement of competition law – which constitutes the highest rate among the EU Member States. Such a solution enables entrepreneurs to avoid financial sanctions, provided that they carry out commitments and obligations imposed.

Anticompetitive proceedings against Cyfrowy Polsat were instituted last year following the analysis of information found on the company’s website and complaints lodged to the Office. The complaints concerned the sale of rights to public screening of Euro 2008, to which Cyfrowy Polsat had exclusive rights. If pub or restaurant owners wanted to transmit the championship, they had to conclude an agreement with the undertaking.

The President of UOKiK established that the company made the acquisation of rights to public screening of championship subject to the purchase of decoder and technical support service. Therefore, the entrepreneurs had to incur additional costs by paying for the offer they could use only on the occasion.

UOKiK has reservations about the offers in which a dominant undertaking makes the conclusion of an agreement subject to fulfilment of additional conditions by the purchaser (e.g. obligatory purchase of other products).

In the course of proceedings Cyfrowy Polsat undertook inter alia to repurchase decoders from the entrepreneurs which required it, and to reimburse the costs of technical support to all entrepreneurs – irrespective of the fact whether or not they still have the decoder. Furthermore, the company undertook to refrain in the future from applying the clause contested by the President of UOKiK and to report on the fulfillment of the commitments during next three sports events for which it will acquire exclusive rights to the sale of rights to public broadcasting. In the case of remaining obligations – within 120 days of the issuance of the decision.

Consequently, the President of UOKiK did not impose on the undertaking any financial penalty, which could amount up to 10% of the revenue earned in the preceding year. However, the financial sanctions might be applied when a company obliged to cease unlawful practice fails to fulfil the commitments. Then, the financial sanction amounts to a maximum of EUR 10,000 per day of delay in execution of commitment decision.

Additional information:
Małgorzata Cieloch, Spokesperson for UOKiK
Department of International Relations and Communication
Pl. Powstańców Warszawy 1, 00-950 Warsaw, Poland
Tel. (+48 22) 827 28 92, 55 60 106, 55 60 430
faks (+48 22) 826 11 86
E-mail: malgorzata.cieloch@uokik.gov.pl