In 2010, the Office of Competition and Consumer Protection broke nearly 30 prohibited price fixing agreements concluded amongst entrepreneurs.  Most recent cases concern price fixing of horticultural products, fireplaces, clothing, port services and professional practices

Under law, it is illegal to enter into agreements aimed at or resulting in elimination, violation or restriction of competition, for example by joint price fixing of  goods and services or dividing the market.

Under law, it is illegal to enter into agreements aimed at or resulting in elimination, violation or restriction of competition, for example by joint price fixing of  goods and services or dividing the market. Such agreements can be concluded not only amongst competitors, but also amongst undertakings operating at different levels of the supply chain. Price fixing practices are considered to be particularly harmful violations of competition. Participation in such an agreement can result in imposing of financial sanctions amounting to as much as 10 percent of the undertaking’s revenue earned in the financial year preceding the year in which a decision in this respect was issued. In 2010, the President of the Office issued 28 decisions regarding agreements restricting competition.

One of the recent decisions involved a prohibited agreement in the wholesale market for horticultural products. The proceedings were instituted in December 2009 following the receipt of information provided at the same time (in a single envelope) by two participants of the collusion who requested immunity from fines. The investigation involved the conducting of inspections with search at headquarters of the undertakings. According to the findings of the Office of Competition and Consumer Protection, the collusion lasted from January 2004 to June 2008, and as many as six entities participated in it. It involved the fixing of minimum resale prices of products manufactured by Ogrody Polskie, including fertilisers, seeds and grass mixes. A division of the market had also taken place – it had been arranged, in what regions individual entrepreneurs would sell products on an exclusive basis.

For the breach of competition the President of the Office of Competition and Consumer Protection fined the participants of the collusion PLN 77 081.53 The penalised companies include: Ogrody Polskie, Green-Land Service, Pest-Ario, Przedsiębiorstwo Handlowe “Biedronka” of Gdańsk, Krokus 2, Res-Gal and Biabor

For the breach of competition the President of the Office of Competition and Consumer Protection fined the participants of the collusion PLN 77 081.53 The penalised companies include: Ogrody Polskie, Green-Land Service, Pest-Ario, Przedsiębiorstwo Handlowe “Biedronka” of Gdańsk, Krokus 2, Res-Gal and Biabor. It is worthwhile noting that in the case of two entrepreneurs – i.e. Ogrody Polskie and Res-Gal there were mitigating factors, namely the applications submitted by entrepreneurs, which helped to obtain information about the existence of the collusion. As the applications were submitted at the same time, due to formal reasons the leniency program was not applied, as it was impossible to determine the order of submission of the applications, which is the decisive factor, when it comes to waving or mitigating of financial sanction.

There was also a price fixing agreement between Jotul Polska and its sales representatives. The company is a large distributor of cast iron ovens and fireplaces in the Polish market. As it was revealed by the investigation, in agreements with its distributors the undertaking obliged them to sell products at prices presented in the proposed price list, and forbade them to make any independent decisions as to discounts or promotions. At various times, between 2000 and 2009 the collusion involved as many as 73 trading partners of the distributor. The initiator of the collusion – Jotul Poska was fined PLN 31 164. Fines amounting to a total of PLN 185 604 were imposed on 26 other entrepreneurs. As far as the other participants of the collusion are concerned, due to their low revenues, President of the Office decided not to impose any financial penalties. 

Apart from the initiator of the collusion, the following entities were also fined:Intersport Polska, Misiek Bury, Cerro Torre Sport, Trekker Sport, Alp of Mikołów, Sports Store Dyskobol of Szczecin and Espina-Sport

Another uncovered prohibited price fixing agreement was concluded between VF Poska Distribution and its trading partners. The company’s business profile includes manufacturing of clothing as well as distribution of the following popular brands:  The North Face and JanSport. The investigation  revealed that the undertaking had concluded agreements with some of its trading partners, whereby it had obliged them to adhere to recommended retail prices.  The President of the Office imposed on the participants of the collusion a total fine of PLN 162 187. Apart from the initiator of the collusion, the following entities were also fined:Intersport Polska, Misiek Bury, Cerro Torre Sport, Trekker Sport, Alp of Mikołów, Sports Store Dyskobol of Szczecin and Espina-Sport. The entrepreneurs have now abandoned the prohibited practice.

Prohibited agreements do not have to involve generally available goods – they may also involve services offered to a narrow group of customers. This was exactly the case with the undertakings offering services at the Marine Port in Szczecin. Three companies fixed prices for docking of ships at the wharfs operated by them. President of the Office ordered the undertakings to cease the prohibited practice and fined the participants of the collusion: DB Port Szczecin was fined PLN 41 954, Elewator Ewawas fined PLN 23 016, whileFast Terminals was fined PLN 7 063.

The above specified decisions are not final and binding. The affected undertakings are entitled to lodge an appeal with the Court of Competition and Consumer Protection.

Currently, the Office of Competition and Consumer Protection is conducting several antitrust investigations concerning prohibited agreements. One of them involves the Polish Federation of Real Estate Professions Associations,Polish Real Estate Federation and Polish Federation of Real Estate Managers. Under law, professional associations have the status of entrepreneurs, and hence they are not allowed to restrict competition. According to the information available to the Office of Competition and Consumer Protection the Federations fixed the fee for candidates to the profession, which has no legal basis, and is determined only by way of agreement between them.

Any undertaking, who would like to avoid severe financial sanctions, may benefit from the leniency program. An entity, which as the first participant of collusion provides vital information in this respect, is not the initiator thereof and has not induced others to engage into prohibited practices, may apply even for a full immunity from the fine. Lawyers of the Office of Competition and Consumer Protection are available to answer any questions concerning the program at: +48 22 55 60 555.

Additional information for the media:
Małgorzata Cieloch, Spokesperson for the Office of Competition and Consumer Protection
Pl. Powstańców Warszawy 1, 00-950 Warsaw
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