Termet, a manufacturer of gas boilers and water heaters, has entered into a prohibited agreement with its distributors. Under the arrangement in question, the distributors were not allowed to sell the goods at prices which were below a pre-determined threshold. The President of the UOKiK has issued a decision concerning the case in question

Termet is a manufacturer of gas boilers and water heaters. Its biggest distributors are Autometal, SBS, MAR-ROM1, EUROTERM and TGS Technika Grzewcza i Sanitarna.

In the course of the proceedings conducted by the President of the Office of Competition and Consumer Protection, it has transpired that the manufacturer and its distributors have entered into a prohibited agreement. In its contracts, Termet would specify the minimum resale prices for its products. The distributors would instruct the retailers on the level of retail prices recommended by the manufacturer. They would also report any retailers that refused to comply with the guidelines issued by Termet.

– The arrangement in question affected mostly the customers of Termer as well as consumers who purchased the boilers and water heaters manufactured by the company. The agreements concluded made it possible to maintain prices at a level that was higher than would have been the case if no anti-competitive restrictions had existed – says Mr Marek Niechciał, President of the UOKiK.

The Competition Authority concluded that the practice in question had the effect of restricting competition. As a result of the agreement, Termet was able to prevent its distributors from directly determining the prices of the products sold.

In the course of the proceedings, the entrepreneurs have discontinued their prohibited practices. For the above reasons, the distributors were able to avoid the imposition of financial penalties. A financial penalty in the amount of nearly PLN 213 thousand has been imposed upon the Termet, the company which has initiated the anti-competitive practices. The decision is not final, and the company may appeal against it to the Court of Competition and Consumer Protection.

The UOKiK informs

Price fixing, including the imposition of fixed resale prices by manufacturers, constitutes a type of prohibited agreement. It is one of the most serious types of violations of the provisions of antitrust law. The financial penalty imposed upon the entrepreneurs participating in this type of collusion may amount to as much as 10% of their annual turnover. Entrepreneur! If you have entered into an illegal arrangement, you may still take advantage of the leniency programme. Under this programme, the undertaking which is the first among the colluding parties to provide the Competition Authority with evidence proving the existence of an anti-competitive agreement may even be granted complete immunity from fines. Detailed information on the leniency programme may also be found on the UOKiK website, including in the form of questions and answers for undertakings. Answers to all questions regarding the program, even those asked anonymously, are offered by our lawyers available at 22 55 60 555.

Additional information for the media:

Press Office of the UOKiK 
Pl. Powstańców Warszawy 1, 00-950 Warszawa
Phone: 695 902 088
E-mail: [SCODE]Yml1cm9wcmFzb3dlQHVva2lrLmdvdi5wbA==[ECODE]

Twitter: @UOKiKgovPL