• The President of UOKiK obliged Poczta Polska to change their business practices.
• The company might have used its market position to distort competition.
• The assumed commitment shall enable independent postal operators to compete fairly with the market tycoon.

Poczta Polska (PP) enjoys the status of designated operator and is obliged to offer universal postal services. The principles of providing these services are the subject of specific regulations in the Postal Law.

As for other (non-universal) postal services, PP has to compete - under free competition principles - with other entities that independently provide postal services in part of the country within their own postal network. PP can then take on two roles – of a competitor and a contractor, as independent companies, as independent entrepreneurs operating their own postal infrastructure in selected locations in Poland, must often use PP's infrastructure to provide their services to customers across the country, such as delivering their packages to recipients. At the same time, PP has a strong market position in this market. Under competition law, it cannot take advantage of it and disrupt the competition process.

Having completed the proceedings, the President of UOKiK resolved that Poczta Polska's practices might have constituted abuse of its dominant position and he ordered the company to change its market practices.

Poczta Polska’s practices so far

The contested practices continued since 2016. The first of these concerned the situation where the Poczta Polska's contractor was required to provide them with commercial information about the customers for whom it provided a given type of service. The possession of such data by PP already at the contract signing stage was unjustified as it might have led to acquisition of customers from its competitors.

There was no fixed pricelist, either. The pricing was conducted separately for each contractor. This meant, in turn, that an independent company offering postal services was unable to quote straight away the price of postal services for its customers. This might have negatively affected its attractiveness as a trade partner.

Additionally, a Poczta Polska’s contractor had to in advance specify the number of mailed items in a given settlement period. If there were fewer of them, a shortage of even a single one, the price for all the items could have increased to a rate applicable to small mailing volumes.

“Thanks to competition, we receive better quality goods and services and lower prices. Therefore, fair competition among postal operators is in the interests of both consumers and traders. Meanwhile, the activities of Poczta Polska could have marginalised competitors on the non-universal postal services market. In my decision, I obliged the company to change its practices, which shall enable other operators to fight honestly for customers,” President of UOKiK, Tomasz Chróstny, says.

Commitment

Under the commitment, Poczta Polska shall not have its pricing terms made dependent on information about the operator's customers. This shall prevent PP from taking over potential customers of their competitors.

Poczta Polska shall also present a price list of services, which will be in force for 12 months. Therefore, independent postal operators shall be able to anticipate price conditions, which in turn shall enable them to present their prices to their customers in advance.

Importantly, the price list shall take into account the number of shipments sent and contain more than two price thresholds. This means that, in the case of less than the declared number of consignments, the price shall not be drastically higher, as has been the case so far. Moreover, the independent operator will be able to add new, higher shipment volume ranges to the contract once during the term of the contract, which will further enable PP to tailor their pricing terms to the operator's individual needs.

The new terms and conditions shall apply to new customers from the date of validity of the decision. The current contractors shall be informed by PP within 2 months from the date on which the decision becomes final about the possibility to modify the terms of the contracts in accordance with the commitments. Once the modification is accepted, it shall enter into force immediately.

PP shall also file a report on the performance of the commitment. The company shall be required to provide, inter alia, new contract templates, information on entities that have annexed contracts and new contractors. The President of UOKiK will then verify whether Poczta Polska has properly fulfilled its commitment. The financial penalty for failure to comply with the decision may amount to EUR 10 thousand per each day of delay.

What is commitment decision

The President of UOKiK may terminate proceedings concerning competition-restricting practices and practices violating collective consumer interests by way of a commitment decision. It allows the proceedings to be completed sooner. Once the proceeding is initiated, the entrepreneur may propose a commitment, the implementation of which will make it possible to eliminate the practice or its effects.. The President of UOKiK may find that the proposed commitment will promote the achievement of these objectives and oblige the entrepreneur to fulfil this commitment. At the same time, no financial penalty is imposed under such decisions.

We would remind you that the Office runs a programme of acquiring information from anonymous whistle-blowers. Visit https://konkurencja.uokik.gov.pl/sygnalista/ and fill out a simple form. The pan-European system we rely on guarantees full anonymity, also towards the Authority’s staff.

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
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