• Sales prices of cleaning devices and systems of the Kaercher brand have been artificially inflated for more than 20 years.
• President of UOKiK Tomasz Chróstny imposed a fine of PLN 26 million on the Karcher company.
• The penalty would be significantly higher, but the entrepreneur has benefited from the leniency programme.

The issued decision concerns Karcher, a company operating in Poland, a member of a capital group producing cleaning equipment. The evidence gathered shows that since the end of the 1990s the entrepreneur, in consultation with its distributors, has set minimum and rigid retail prices for the products. These were home and professional appliances, e.g. washers, high-pressure appliances, vacuum cleaners, mops, sweepers, electric brushes, floor polishers or lining cleaners. Until 2005, the company imposed product prices on its sales networks for both fixed and online sales. After 2005, prices in online stores were mainly set.

- The collusion started as early as at the end of the 1990s which means that for over 20 years it was not possible to buy in Poland any products of the popular Kaercher brand cheaper than at top-down imposed prices. This is an appalling matter, above all, because of the duration of the market collusion. The agreement initially concerned fixed stores and then online sales - says President of UOKiK Tomasz Chróstny.

Written agreements concluded by Karcher with the distributors and general terms and conditions of commercial cooperation included, inter alia, provisions according to which distributors had the right to shape prices of products only on terms and conditions imposed by the Karcher company. This means that the purchasers of Karcher products could not buy them cheaper than at top-down prices. Entrepreneurs who sold products at lower prices were penalised by taking away their discounts, being deprived of marketing support and in extreme cases cooperation agreements could even be terminated. Some sellers actively participated in the discipline of the rest of the entities, informing Karcher about lower prices.

For participating in the non-competitive agreement, President of UOKiK Tomasz Chróstny imposed the fine on Karcher amounting to PLN 26 million. It would be significantly higher, but the entrepreneur benefited from the leniency programme. It admitted to the violation of the law and cooperated with UOKiK at the stage of the proceedings. It also provided previously unknown information and evidence, including on the duration of the collusion and products whose prices were imposed top-down.

Karcher made a preliminary application to join the procedure for voluntary submission to penalty but, having examined the amount of the fine, it withdrew from the procedure. Such action suggests that, despite the existence of clear evidence of the conclusion of the agreement, the company plans to appeal against the decision before a competent court.

At the same time, the company was not granted a waiver from the imposition of the fine. In fact, it encouraged other entrepreneurs to participate in the agreement and the information held by President of UOKiK prior to the submission of the leniency application allowed for the commencement of anti-trust proceedings also without the cooperation of the company.

We also remind you that the Office runs a programme for obtaining information from anonymous whistleblowers. 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.

Entrepreneurs and managers interested in the leniency scheme are encouraged to contact UOKiK. By phone, at: + 48 22 55 60 555 UOKiK lawyers answer all questions concerning leniency applications, including anonymous ones. 

Additional information for the media:

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