598 decisions on infringements of competition and consumer protection law, as well as fines totalling over PLN 95 million - these are the effects of the activity of the Polish Office of Competition and Consumer Protection in 2008

The basic instrument used by the President of UOKiK to protect competition are antitrust proceedings concerning competition restricting practices, i.e. abuses of a dominant position and prohibited agreements. The proceedings may end in a decision ordering the enterprise involved to cease the activities in question and pay a fine. In 2008 the President of UOKiK carried out 493 explanatory proceedings and 196 antitrust proceedings - 152 regarded the abuse of dominance, whereas the remaining 44 concerned prohibited agreements.

Last year, the President of UOKiK issued 54 decisions finding that enterprises used competition restricting practices. Among those decisions, there was one regarding Castorama and ICL, which concluded prohibited agreements fixing minimal prices of paints and varnishes. In the course of the proceedings, it was found that at least since 2004 the companies had been fixing not only the retail prices of paints and varnishes, but also their components, such as the margin. UOKiK ordered the enterprises to cease the practice and imposed a fine exceeding PLN 45 million.

The President of UOKiK is also authorized to control mergers in order to prevent situations where as a result of a transaction a dominant entity is created on the market. Last year, UOKiK investigated 197 cases regarding mergers and takeovers of enterprises. None of the 160 decisions issued as a result forbade the transaction, however, in two cases a conditional clearance was given. In three cases, financial penalties were imposed on enterprises which had not informed UOKiK about its intention to carry out a merger. Most of the notifications regarded the retail and food industry.

Competition protection is strictly connected with the monitoring of state aid. The President of UOKiK gives opinion regarding projects of state aids granted to enterprises under aid schemes and individual decisions before their notification to the European Commission, which decides on the compliance of the aid with the Single Market. In 2008 the President of UOKiK issued 46 opinions, 26 of which regarded aid schemes, whereas 20 concerned individual aid. Also, UOKiK notified 18 individual aid projects and 14 regarding aid schemes.

The responsibilities of the President of UOKiK also include the protection of the weaker participants of the market. Last year, UOKiK carried out 619 proceedings in this respect and issued as a result 339 decisions on practices infringing collective consumer interests.

The most important ones regarded the activities of PKO BP and the Polish Post. The first case concerned the content of advertising materials of the bank’s new time deposit, which informed that the annual interest rate was 6%. However, consumers could learn that the period of the deposit was not calculated from the moment of signing the contract but as of 18 March 2008 only in the bank itself. According to UOKiK, omitting such an important issue in the majority of promotional materials could result in misinterpretation on the part of consumers. A financial penalty of over PLN 5.7 million was imposed on the bank.

In the second case, UOKiK found it unacceptable that Poczta Polska was failing to meet the required delivery dates of consignments and letters. The company was obliged to change the practice and pay PLN 6.6 million in a fine.

In the case of many kinds of services consumers have no possibility to negotiate the content of the contract they are signing - they can only accept or reject it altogether. This way they may be faced with terms which are not always favourable for them. Therefore, in 2008 the Office of Competition and Consumer Protection continued to screen standard B2C contracts, including in the tourist sector, banking services, and more precisely operating withdrawals at the bank cash desk, driving schools and non-public kindergartens. The screenings resulted in 308 orders to change prohibited clauses. 14 actions were filed to the Court of Competition and Consumer Protection and 82 new contract terms were entered into the Register of prohibited clauses. It should be emphasized that in 266 cases enterprises voluntarily changed the standard contracts in question.

Proceedings regarding general product safety are also designed to protect consumers. The President of UOKiK may e.g. order that a product which poses a threat be recalled and impose a financial penalty of up to PLN 100 000. Last year, UOKiK investigated 269 cases regarding general product safety. 125 proceedings were instituted, resulting in orders to eliminate hazards and warn consumers, bans on marketing given products or orders to recall them. 30 fines were imposed. Furthermore, UOKiK received more than 100 voluntary notifications from enterprises informing that products marketed by them did not meet the safety requirements. The majority of the notifications, i.e. 74, concerned the automobile industry; the remaining ones regarded mainly lighting products, machines and toys.

UOKiK is also responsible for managing the fuel quality monitoring and scrutinising system. In 2007 a new Act came into force, making it possible in 2008 to check fuel quality at each stage of distribution: at manufacturing sites, warehouses, wholesalers’, during transportation and finally at filling stations. The inspections were aimed at all fuels available on the Polish market. It was found that the quality of petrol and diesel fuel has deteriorated - 4.2% of the samples did not meet the standards (last year it was 1.7%). In the case of LPG, irregularities were found in 5.81% of inspected stations - in 2007 it was 7.9%, however the inspection was carried out only in nine Polish provinces (vioivodeships) and it was started only in August.

An important part of UOKiK’s activity in 2008 was also legislative work. UOKiK prepared drafts of eight legal acts - including regulations on the leniency program, provisions dismantling the General Inspectorate of the Trade Inspection, the Act on proceedings in matters relating to state aid. Furthermore, the Office provided opinion on over two thousand other legal acts.

The Office also undertakes numerous educational and information initiatives. Apart from a number of academic and press conferences organised in 2008, among other things, UOKiK ran a campaign “Be an aware consumer” devoted to protecting consumers over 60 years old by acquainting them with the basic consumer issues. Moreover, UOKiK continued its television campaign “You can…” informing about 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]