When reserving its right to fix fuel sales prices at its affiliated station, PKN Orlen and its contractor infringed the law as decided the President of UOKiK

PKN Orlen is one of the largest oil industry corporations in Central and Eastern Europe. It processes oil into e.g. lead-free petrol, diesel oil and avgas and manages their distribution. Fuel is sold both at the stations owned by the undertaking and at the stations with which PKN Orlen has concluded the so-called affiliation agreements, mainly limited to station’s commitment to purchase fuel from a single supplier, and franchise agreements, assuming, apart from sales of products of only one specific fuel consortium, the use of a brand recognised by consumers, such as Orlen or Bliska, and the use of know-how in sales and marketing of specific goods.

Antitrust proceedings against the consortium and two affiliated fuel stations (in Krasnystaw and Lechów) have been initiated in 2008, after fuel market inspection conducted by UOKiK, under which the Office received standard contracts signed with contractors from PKN Orlen. One of the clauses stipulated that network organiser reserves the right to fix fuel sales prices at the station.

The President of UOKiK has decided that PKN Orlen and the fuel station in Krasnystaw infringed the antitrust law when concluding an agreement which contained such a clause. Pursuant to legislation in force, agreements whose objective or effect is i.a. elimination or restriction of competition are prohibited, in particular those consisting in price fixing. Whether the planned objective or effect has been achieved or whether the agreement has been indeed exercised is irrelevant. The negative consequences of such prohibited agreements concluded between undertakings influence the competitors’ behaviour and the consumers who are deprived of the access to offers varying in prices and quality.

The President of UOKiK has imposed fines on participants of the agreement - PLN 52,736,994.19 on PKN Orlen and PLN 27,347.65 on the station in Krasnystaw. It should be pointed out that since July 2007, these undertakings have been cooperating on the basis of a new agreement which does not contain the clause questioned by UOKiK. In the case of the station in Lechów, the proceedings have been discontinued.

The decision is not final. The undertakings may lodge an appeal to the Court of Competition and Consumer Protection.

Additional information for the media:
Małgorzata Cieloch, Spokesperson for UOKiK
Department of International Relations and Communication
Pl. Powstańcow Warszawy 1, 00-950 Warszawa
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