The Court of Competition and Consumer Protection (CCCP) has confirmed UOKiK’s decision on PKP Cargo. The Court also sustained the fine of over PLN 60 million imposed by the Office

In July 2009 the President of the Office issued the decision in which decided that PKP Cargo abused its dominant position. The motion for action was submitted by CTL Logistics, PKP Cargo’s competitor. This decision was given an order of immediate enforceability as in the Office’s assessment, further application of the policies in question might lead to irreversible changes on the market. The company was also fined with over PLN 60 million. PKP Cargo appealed the decision to the CCCP.

In July 2009 the President of the Office issued the decision in which decided that PKP Cargo abused its dominant position. The motion for action was submitted by CTL Logistics, PKP Cargo’s competitor. This decision was given an order of immediate enforceability as in the Office’s assessment, further application of the policies in question might lead to irreversible changes on the market. The company was also fined with over PLN 60 million. PKP Cargo appealed the decision to the CCCP

The materials collected in the course of the proceedings proved that PKP Cargo used its market power to impose onerous cooperation terms on several of its contracting parties. The company provides carriage services based on general terms, i.e. general freight agreements concluded at cargo booking offices, and based on special terms connected with offering the contracting parties attractive discounts. PKP Cargo claimed that both forms of cooperation were available to all its customers on equal basis. However, according to the company’s policy, an enterprise recognised as its competitor as regards transporting a given type of cargo, could only sign an agreement based on general rules. Consequently, some enterprises were deprived of the possibility to do business on more advantageous terms.

This practice affected PKP Cargo’s competitors, who could reduce its market power, took over part of its customers or forced it to lower its prices.

On 9^th of May 2011 the CCCP confirmed the decision of the President of the Office. The court emphasized that the company impeded the competition and sustained the imposed fine.

According to the Polish law, he undertaking may lodge an appeal to the Court of Appeal against the verdict of the Court of Competition and Consumer Protection.

Additional information for the media:
Małgorzata Cieloch, Spokesperson for UOKiK
Department of International Relations and Communication
Pl. Powstańców Warszawy 1, 00-950 Warszawa
Tel. (+48 22) 827 28 92, 55 60 314
faks (+48 22) 22 826 11 86
E-mail: malgorzata.cieloch@uokik.gov.pl