President of the Office of Competition and Consumer Protection Cezary Banasiński ordered Rekopol to immediately discontinue the competition restricting practices that it was charged with. The matter referred to the sign “Green Point” marking

The Act on the duties of undertakings on waste management imposes an obligation of waste recycling on those entrepreneurs who are involved in the production or import of goods. This can be done by themselves or by specialised companies. Among many companies operating in the market, only one - Rekopol-Organizacja Odzysku - holds a right to licence and use in Poland the mark “Green point”, which is a world-recognisable sign associated with care for the natural environment.

Since January 2004, at request of Zakład Gospodarki Komunalnej Organizacja Odzysku Biosystem, UOKiK has been conducting an investigation against Rekopol. In the opinion of the applicant, Rekopol breaches market rules since enterprises that want to use the “Green Point” marking are forced to enter into recycling contracts exclusively with that company. If they wished to make use of a competitive offer and be able to lawfully place the “Green Point” mark on packaging, they would have to pay double.

The information collected by the Office shows, that Rekopol could have breached the provisions of the antimonopoly law. Making it conditional to use the “Green Point” marking on entrusting the services of waste recycling (with respect to all kinds of packaging), may constitute a restricting competition practice. In the opinion of UOKiK, the practices of Rekopol result in an inferior market situation of the other recycling organisations by loss of their clients or difficulties in obtaining new clients, thus consolidating the dominant position of the company.

The provisions of the Act on competition and consumer protection give a right to the President of UOKiK to oblige an undertaking to discontinue specific practices before the antimonopoly proceeding has been completed. Then it is necessary to collect evidence that the law has been breached. Such situation occurred with respect to practices by Rekopol.

As continuation of the practices may cause major and difficult to repair hazard to competition, the President of UOKiK ordered Rekopol to immediately discontinue the questioned practices, even before a final decision in the matter has been issued. Pursuant to the decision, the company may not use the practices by 31 December 2006.

In accordance with the law, should Rekopol appeal against the decision of the President of UOKiK, it remains in force. If the company fails to observe the decision issued by the Office, it will be possible to impose on it a fine of 10 thousand EUR for each day of delay.

Additional information:
Elżbieta Anders, Spokesperson of UOKiK
International Relations and Communication Department
Office of Competition and Consumer Protection
Pl. Powstańców Warszawy 1, 00-950 Warsaw
Ph.: (+48 22) 827 28 92, 55 60 106, 55 60 314
E-mail: eanders@uokik.gov.pl