UOKiK able to penalize undertakings for violating collective consumer interests, higher turnover thresholds for notification of envisaged concentrations, elimination of proceedings launched upon motion - the new antimonopoly act comes into force tomorrow

The Act on competition and consumer protection, coming into force on 21 April, adjusts Polish regulations to the requirements of the Community law. Its provisions respond to the current day needs, taking into account UOKiK’s several years of experience and the current market conditions. The changes will provide an instrument of increasing the efficiency of the Polish competition and consumer protection system.

One fundamental change, comparing with the previous Act, is the possibility for the President of UOKiK to impose fines upon undertakings applying practices violating collective consumer interests. The new provision results from the fact that violations of collective consumer interests are equally dangerous as competition infringements. The possibility of imposing fines will, first of all, serve as a deterrent. The Act specifies the maximum amount of fine that can be imposed, i.e. 10 per cent of the undertaking’s revenue in the year preceding the year in which the decision was issued. As a result, it will be possible to fight against undertakings violating the rights of weaker market participants more effectively.

Elimination of the institution of proceedings launched upon motion will allow the President of UOKiK to focus on the most important violations of the Act that have the most significant impact on the market. Before, the President of UOKiK could not extend the scope of the proceedings beyond the scope of the motion to other anticompetitive practices or practices violating collective consumer interests. UOKiK’s experience shows that ca 80% of the motions filed end with UOKiK finding that no violation of law had occurred. The new solution will, to a great extent, shorten the time of conducting proceedings. The new Act also provides that an undertaking will have the right to notify the President of UOKiK of any prohibited practices, which may be an impulse for initiating new proceedings.

The Act also increases the turnover thresholds over which the participants of a concentration - e.g. a merger or a takeover - are obliged to obtain the President of UOKiK’s clearance. According to the previous Act, a transaction was due for notification if the total worldwide turnover of its participants in the year preceding the notification exceeded the equivalent of EUR 50 mln. According to the new Act, the obligation of notification applies to transactions whose participants’ total turnover in the preceding year exceeds EUR 1 bln worldwide or EUR 50 mln in Poland. The necessity for these changes arises from UOKiK’s experience - they are supposed to enable the President of UOKiK to focus on the biggest concentrations which may have an actual impact on the state of concentration on the market.

The Act also provides for substantial enhancement of the staff resources of local consumer ombudsmen. It will be now possible to set up consumer ombudsman offices in districts (poviats) whose population exceeds 100 thousand and in cities with district (poviat) rights.

Additional information:
Małgorzata Cieloch, Spokesperson for UOKiK
Pl. Powstańców Warszawy 1, 00-950 Warszawa
Tel. 22 827 28 92, 55 60 106, 55 60 314
faks 22 826 11 86

E-mail [SCODE]bWNpZWxvY2hAdW9raWsuZ292LnBs[ECODE]