• The online sale of Empire brand dog and cat food may have been conducted in violation of antitrust laws.
• This would mean that consumers could not buy these products online cheaper than at artificially set prices.
• President of UOKiK Tomasz Chróstny has brought charges against Empire Brands and two of the company’s managers.

The Empire Brands company sells dog and cat food under the Empire brand. It conducts retail sales through its own online store and Allegro platform, and wholesale distribution by mail order to veterinary practices and pet stores which then sell the products in traditional stores or online.

Information from UOKiK obtained, among others, during a search at Empire Brands’ headquarters shows that the company may have fixed retail price of the Empire pet food online with vendors in personal and telephone conversations, as well as in e-mail correspondence. This practice may have continued since 2016.

- The effect of the suspected agreement may have been to charge identical prices for the Empire pet food online by the company and all online retailers. Thus, consumers would not be able to buy these products cheaper. Let me remind you that according to the antitrust law, each vendor should be free to set prices and compete with them for customers. Setting rigid and minimum prices is prohibited - says President of UOKiK Tomasz Chróstny.

Empire employees might have monitored whether pricing arrangements were being followed. Entrepreneurs who wanted to sell the pet food online at a lower price could be called on to change their prices, then they could face penalties in the form of changing payment forms, restricting access to promotions or applying higher wholesale prices for them.

Empire Brands and two company executives were charged with violating competition. Among other things, managers could have been sending emails in which arrangements were made or carried out, as well as issuing work orders to their employees to control the prices charged by online retailers. For participating in an agreement restricting competition, an entrepreneur is at risk of a penalty of up to 10% of its turnover, while managers may face a fine of up to PLN 2 million.

Severe sanctions can be avoided by taking advantage of the leniency scheme. It gives the entrepreneur involved in the illegal agreement and those responsible for the collusion a chance to reduce and sometimes avoid fines. It is applicable to those who agree to cooperate with the President of UOKiK as a “crown witness” and provide evidence or information on the illegal agreement. Entrepreneurs and managers interested in the leniency programme are encouraged to contact the Authority. By calling a dedicated number: 22 55 60 555, you will be able to talk to UOKiK lawyers, who will answer all of your questions related to leniency applications - including those asked anonymously.

We also remind you that we conduct a programme to obtain information from anonymous whistleblowers. Do you wish to inform UOKiK about competition restricting practices? Visit konkurencja.uokik.gov.pl/sygnalista/ and fill out a simple form. The pan-European system we rely on ensures full anonymity, also towards the Office itself.

Additional information for the media:

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