281 decisions concerning infringements of competition and consumer protection law and fines totalling PLN 170 million - these are the results of UOKiK’s work in 2007.

The basic competition protection tool used by the President of the Office are antitrust proceedings concerning competition-restricting practices, i.e. abuse of a dominant position and prohibited agreements. The result of the proceedings may be an order to cease the contested actions and the imposition of financial sanctions. In 2007 the President of UOKiK conducted 440 explanatory proceedings and 248 formal antitrust proceedings - 201 related to businesses abusing their market position and 47 - to prohibited agreements.

Last year, the President of the Office issued 80 decisions concerning antitrust law infringements. They included a decision concerning Telekomunikacja Polska punishing the company with a fine of PLN 75 million for discriminating competitors on the Internet services market. The antitrust proceedings showed that the company introduced into its controlling devices (routers) special commands which were intended to limit the transfer of data depending on their source.

The President of UOKiK has also the power to control mergers of enterprises in order to avoid situations where as a result of a transaction a dominating entity is created on the market. Last year, the Office conducted 310 proceedings concerning mergers and acquisitions. None of the 207 decisions issued prohibited a transaction, but in two cases a conditional clearance was given. In four cases the enterprises involved were fined for the failure to notify an envisaged merger. Most notifications concerned trade and food industry.

Competition protection is closely linked to state aid monitoring. The President of UOKiK issues opinions about planned state aid for to be granted to enterprises under aid schemes and individual decisions before they are forwarded to the European Commission, which decides on their compatibility with the Common Market. In 2007, the President of the Office issued 71 opinions, 53 of which concerned aid schemes and 18 - individual aid. UOKiK also notified 12 individual aid projects and 14 concerning aid schemes.

The powers of the President of the Office also include the protection of weaker market participants. Last year, the President of UOKiK conducted 347 proceedings as a result of which 201 decisions were issued stating an infringement of collective consumer interests. One of them concerned DHL Express. The proceedings were launched in September 2006 and showed that the company infringed collective consumer interests by introducing into its “Rules of providing transportation and postal services” terms that were contrary to law. The irregularities related, among other things, to the procedures of seeking damages for the loss or damage of shipment or a delay in delivery. The company undertook to change the contested terms.

In 2007, the Office of Competition and Consumer Protection continued its investigations of B2C standard contracts, including ones used by developers and real estate agents, cable TV, Internet and mobile telephony providers, as well as higher public schools. These activities are intended to eliminate prohibited contractual terms from use. The investigations resulted in 297 letters sent to enterprises demanding that the prohibited clauses be removed. As a result of non-compliance with the demands of the President of the Office, 28 actions were brought to the Court of Competition and Consumer Protection and the Register of Prohibited Clauses grew by 134 terms recognised as prohibited by UOKiK.

General product safety proceedings also contribute to the protection of consumers. As their result the President of UOKiK may order, for instance, a withdrawal of a hazardous product from the market, and since March last year, also impose a fine of up to PLN 100 thousand. In 2007 UOKiK conducted 264 administrative proceedings against enterprises which placed dangerous products on the market. Furniture, clothes and bicycles were the kinds of products which posed the most problems. 20 new products were entered into the Register of Dangerous Products. Moreover, the Office received 108 voluntary notifications from enterprises about products non-compliant with safety requirements which they placed on the market.

UOKiK is also responsible for managing the system of liquid fuel quality monitoring and scrutinizing. On 1 January 2007, the Act on fuel quality monitoring and scrutinizing system entered into force replacing previous regulations. As a result, quality control was extended to cover all types of fuel available on the Polish market, for the first time including liquefied gas (LPG). As the last year’s inspections demonstrated, the quality of petrol and diesel fuel improved, however the inspection of LPG showed poor results - 7.9% of the filling stations screened offered gas that did not meet quality requirements.

Legislative works were another important element of UOKiK’s activities in 2007. The Office prepared drafts of 10 legal acts - including the Act on combating unfair commercial practices, an amendment to the Act on general product safety, as well as the Act on abolishing the General Inspectorate of the Trade Inspection. In addition, it issued opinions on more than two thousand other legal acts.

The Office also undertakes numerous educational and information initiatives. Apart from a series of scientific and press conferences, in 2007 the Office carried out the TV campaign "You can...”. Its ads were intended to increase the legal awareness of weaker market participants and to promote the institution of consumer ombudsmen.

Additional information:
Małgorzata Cieloch, Spokesperson for UOKiK
Pl. Powstańców Warszawy 1, 00-950 Warsaw, Poland
Tel. (+48 22) 827 28 92, 55 60 106, 55 60 430
faks (+48 22) 826 11 86
E-mail: [SCODE]bWNpZWxvY2hAdW9raWsuZ292LnBs[ECODE]