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Office of Competition and Consumer Protection

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Collusion on the animal feed market - proceedings of the Office Of Competition and Consumer Protection

< previous | next > 16.01.2017

Collusion on the animal feed market - proceedings of the Office Of Competition and Consumer Protection

The Office of Competition and Consumer Protection initiated two sets of proceedings in which it intends to verify whether there has been a collusion between the sellers of industrial cattle feed. It is believed that the company called Polmass might have colluded to divide the market with its two competitors: Ekoplon and Agro-Netzwerk Poland.

Any anti-competitive agreements – including price-fixing or market division arrangements – remain a threat to the economy. The Office of Competition and Consumer Protection strives to identify and monitor those markets where there is an elevated risk of infringement of competition. The selection criteria include, inter alia, high level of concentration, small number of market participants and unreasonable changes in pricing. Once the applicable sectors are identified, the Competition Authority subjects them to further analysis and evaluation. This was the procedure followed in case of the animal feed market.

The President of the Office of Competition and Consumer Protection initiated two sets of antitrust proceedings, preceded by an analysis of the animal feed market conducted in years 2015-2016. The Competition Authority also conducted searches at the offices of the undertakings involved. According to the information thus obtained, it appears that two anti-competitive agreements might have been concluded by Polmass with Ekoplon and, separately, with Agro-Netzwerk Poland. In both cases, the Competition Authority suspects that the undertakings in question have made arrangements on the division of the domestic animal feed market, including, in particular, with respect to the sale of milk replacers for cattle. The arrangements between the said undertakings most likely involved the non-delivery of products to those customers who were being supplied by another participant of the arrangement in question. This situation might have restricted the choice of animal feeds among, inter alia, cattle farmers, feed distributors and diaries, while at the same time also having an impact on the prices for these products.

– The market on which the suspected collusion might have taken place is worth a few hundred million zlotys. We have obtained strong evidence of illegal conduct during the searches performed at the offices of the undertakings involved – says Marek Niechciał, President of the Office of Competition and Consumer Protection.

The participants of an illegal arrangement who wish to avoid financial penalties may take advantage of the leniency programme. An undertaking may file a formal application either in person at the headquarters of the Office of Competition and Consumer Protection in Warsaw, to an employee of the Competition Authority for the record, by post, by fax or by e-mail using the following e-mail address: [SCODE]bGVuaWVuY3lAdW9raWsuZ292LnBs[ECODE].  Answers to all questions regarding the program, even those asked anonymously, are offered by our lawyers available at: 22 55 60 555.

Detailed information on the leniency programme may also be found on the website of the Office of Competition and Consumer Protection, including in the form of questions and answers for undertakings.

Members of the management of an undertaking may also take advantage of the leniency programme. We would like to remind you that the Office of Competition and Consumer Protection may impose financial penalties not only on companies, but also on natural persons who become involved in practices such as price fixing or collusion to divide markets or restrict output. The amount of a fine imposed upon a natural person may amount to as much as PLN 2 million.. The Office of Competition and Consumer Protection also maintains the leniency plus programme. This programme allows the undertaking or member of a management body who files an application as the second or subsequent undertaking or person in the given case to obtain an additional, 30% fine reduction if such undertaking or person provides the Office of Competition and Consumer Protection with information on another instance of collusion in which the undertaking or person in question was involved. In the latter case, the undertaking or member of the management thereof will have the status of the first applicant and will be offered total immunity from fines.

Additional information for the media:

Press Office
pl. Powstańców Warszawy 1, 00-950 Warsaw
Phone: 22 55 60 430, 55 60 345
E-mail: [SCODE]Yml1cm9wcmFzb3dlQHVva2lrLmdvdi5wbA==[ECODE]

Twitter: @UOKiKgovPL

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See also:
ICPENICNPolish Aid