Eliminating practices detrimental to the economy – this is the main objective of the amendment of the Act on competition and consumer protection.  The new provisions mean favourable arrangements for undertakings. The waiting period for decisions in concentration control matters can be shortened, and a larger number of entities will be able to benefit from exemption from fine. The draft amendments have been referred to the Sejm

After 20 years of application of the competition law, the need has arisen to adjust it to the present economic realities. UOKiK has developed a draft amendment of the Act on competition and consumer protection. The main business-friendly amendments are the following:

1. Decisions on mergers will be issued earlier

Currently, irrespective of the degree of complexity of a matter, proceedings concerning a merger or acquisition should be completed within two months. The amendment introduce a two-stage procedure for the analysis of applications – simple cases will be considered within one month, while an additional period of four month swill be allowed for more complex ones. This arrangement is used by the European Commission and by many national authorities. The experience of the Office shows that a large majority of cases will be finalised in the first stage. This will allow, first of all, a concentration decision to be obtained earlier. On the other hand, in complicated cases, undertakings will have greater certainty as to the timing of the decision, and hence will be able to adjust their business plans accordingly.

2. Easier approach to conditional decisions

The undertaking will be able to request that the conditional part of a merger consent be kept confidential. This is a proposal of the business community – undertakings pointed out that prospective buyers’ knowledge of e.g. scheduled dates of sale of subsidiaries or part of assets reduces their market value. The changes are intended to ensure that information on the exercise of a condition can be classified.

3.Undertakings will find out earlier that a transaction is detrimental to the market

While the proceedings are still pending, the undertaking will already be made aware of the expected decision, including any objections the Office may have. In the course of the proceedings, the undertaking will able to comment on such objections, or even modify the scope of concentration, so as to avoid a decision banning the transaction.

4. More entities will be given the opportunity of exemption from penalty for collusion

Undertakings will also benefit from changes to the leniency programme which allows a party to a restrictive agreement to avoid or the fine or have it reduced in exchange for cooperation with the Office and disclosure of information on a collusive agreement. Currently only the first entity to inform the Office of restrictive practices may hope for complete immunity, while others may be granted reduction in fines. The arrangement adopted, known as leniency plus, will enable a second or subsequent firm filing a request to obtain an additional fine reduction by 30 per cent if it informs the Office about a different collusion in which it also participated. In the latter case the undertaking will be given the status of first applicant and avoid a fine.

5. Undertakings will avoid a repeated breach of law

The remedies available are also positive from the point of view of professional participants of the market. In its final decision terminating proceedings, UOKiK will be able to instruct the undertaking what measures to take to remedy the breach or desist from restrictive practices. Representatives of the business community have often pointed out the need to clearly indicate how a decision should be executed, owing to which they will be able to avoid a repeated breach of law and another fine. The proposal contained in the draft Act fully meets this expectation.

These are not the only changes planned in the new legislation. What is also worth noting it the option of voluntary submission to penalty or financial sanctions for persons managing an enterprise who are responsible for breach of law. The draft Act is currently being processed by the Sejm. It was also the main topic of the conference titled Better competition protection – proposals for legislative changes, which was hosted by the Office of Competition and Consumer Protection. It was held in Lublin on 10 October 2013. The question of amendment of anti-trust regulations was discussed by representatives of UOKiK, the European Commission, foreign competition authorities, undertakings and their associations, the academic community, experts in competition law.

- I believe that the changes to be adopted will mainly benefit undertakings that are affected by restrictive practices. Undertakings should operate under conditions of free competition and this is the prime objective of the activities of the Office. It has never been our intention to obstruct, but to protect.  I know we will leave the conference richer in experience and knowledge, which will enable us to protect competition more effectively – said Ewa Wiszniowska, Director of UOKiK Branch Office in Lublin, at the meeting.

A record of the debate will soon be available at www.uokik.gov.pl

Additional information for the media:
Małgorzata Cieloch, UOKiK Spokesperson
Pl. Powstańców Warszawy 1, 00-950 Warsaw
Tel. 22 827 28 92, 55 60 314
Fax 22 826 11 86
E-mail [SCODE]bWNpZWxvY2hAdW9raWsuZ292LnBs[ECODE]