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Office of Competition and Consumer Protection

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Branding and marketing agencies - UOKIK proceedings

< previous | next > 20.12.2019

Branding and marketing agencies - UOKIK proceedings
  • Persuading branding agencies not to participate in certain competitions.
  • Organising an exchange of information that may have restricted competition.
  • These are UOKiK's accusations against Stowarzyszenie Komunikacji Marketingowej SAR. The Office has initiated proceedings against this trade association.

Under the Competition and Consumer Protection Act, agreements whose aim or effect is elimination, restriction or other infringement of competition are prohibited. Such agreements also include resolutions and other actions of associations of entrepreneurs, their statutory bodies or professional associations.

UOKiK has initiated proceedings against Stowarzyszenie Komunikacji Marketingowej SAR. The association brings together over 130 entities engaged in broadly-understood marketing services. The Office's objections concerned, among others, arrangements concerning participation of branding agencies in competitions (also called tenders by marketing agencies and customers).

According to information held by the Office of Competition and Consumer Protection (UOKiK), obtained among others during searches at business offices, it appears that the association persuaded agencies not to apply for contracts in which no rejection fee was offered.

- I would like to stress that we are not questioning the fact that branding agencies request a fee for participation in tenders. This may be justified due to the workload required to prepare a bid. However, this should be an individual decision of each company and should not result from an agreement. Establishing common practices, including withdrawal from participation in a competition if such a fee was not provided for, may be illegal - says Michał Holeksa, Vice-President of UOKiK.

The second accusation concerns organisation of unauthorised exchange of information, not only between branding agencies, but all agencies associated in SAR. The association provided a special electronic platform where marketing agencies posted information on which tenders they intended to take part in and if the same tender was reported on the tendering platform by several agencies, SAR connected them in a common “tendering room”. Knowledge of competitors' behaviour may have limited competition between agencies associated in SAR.

Competition-restricting practices are subject to a financial penalty of up to 10% of turnover. SAR’s practice may have had an impact on trade between EU countries, therefore, UOKiK is conducting proceedings in connection with violations of Polish and EU regulations.

Notify UOKiK

Serious sanctions can be avoided thanks to the leniency programme. It gives entrepreneurs, as well as managers who participate in an illegal agreement, a chance to become a “key witness”. This allows them to avoid the fine completely or to have it reduced. The programme may be used on the condition of providing evidence or information concerning the existence of a prohibited agreement and cooperating with UOKiK. Entrepreneurs and managers interested in the leniency programme are asked to contact the office. UOKiK lawyers can answer all questions concerning leniency applications, including anonymous enquiries, at a special phone number: 22 55 55 60 555.

If you are aware of an illegal agreement in place at your former or current company, notify UOKiK. The Office runs a programme to obtain information from anonymous whistleblowers. Go to https://konkurencja.uokik.gov.pl/sygnalista/ and complete a simple form. Our system guarantees that your identity will not be disclosed.

Additional information for the media:

UOKiK Press Office
Pl. Powstańców Warszawy 1, 00-950 Warszawa, Poland
Phone +48 695 902 088, +48 22 55 60 246
E-mail: [SCODE]Yml1cm9wcmFzb3dlQHVva2lrLmdvdi5wbA==[ECODE]
Twitter: @UOKiKgovPL

 

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See also:
ICPENICNPolish Aid