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PGNIG restricts competition?

< previous | next > 05.07.2011

PGNIG restricts competition?

The antimonopoly proceedings instituted by the President of UOKiK shall determine whether PGNiG abuses its position on the retail sales market of natural gas. The undertaking may breach both the national and the community law. The issues concerning antimonopoly laws applying in different MS of the EU shall present one of the topics discussed during the annual meeting of heads of antitrust authorities held in Warsaw on 5th and 6th July 2011

The President of UOKiK instituted the antimonopoly proceedings. Analysis of the Office concerning contractual clauses applied by the undertaking has shown that the company may hinder some contractors the withdrawal from the complex contract for gas fuel supply

Polskie Górnictwo Naftowe i Gazownictwo (PGNiG) owns approximately 98 percent of retail sales market share for natural gas. Suspecting PGNiG of abusing its dominant market position, the President of UOKiK instituted the antimonopoly proceedings. Analysis of the Office concerning contractual clauses applied by the undertaking has shown that the company may hinder some contractors the withdrawal from the complex contract for gas fuel supply. Contracts concluded mainly with big industrial receivers included the clause according to which filing the statement stating the withdrawal from the agreement later than on 30th Septebmer of a given year results in contract being dissolved only at the end of the subsequent year. Such long terms of notice, even as long as 15 months, may discourage commercial parters of the undertaking from resigning from the contract and turning to services rendered by other entities. UOKiK shall assess if actions undertaken by PGNiG may hinder entering the market by new entities operating in natural gas sales or eliminate the already existing ones.

According to the Act on competition and consumer protection, the antimonopoly proceedings concerning competition-restricting practices shall be concluded not later than within 5 months from the date of instituting. Having assessed the undertaking has abused its dominant position, the President of UOKiK may impose on it a fine amounting up to 10 percent of revenue gained in the year preceding the decision.

It is worth noting that the proceedings shall be conducted based on the EU law (Art. 102 TFEU). The Office shall determine whether the operation of undertaking dominant on the market may have affected the trade between the EU Member States, e.g. by hindering foreign entities entering the Polish market.

The annual meeting of heads of antitrust authorities European Competition Authorites (ECA), hosted this year by the President of UOKiK, shall be dovoted to the issue of antimonopoly law applied in different countries

The annual meeting of heads of antitrust authorities European Competition Authorites (ECA), hosted this year by the President of UOKiK, shall be dovoted to the issue of antimonopoly law applied in different countries. The ECA will cover inter alia the seminar entitled “Multijurisdictional mergers in Europe” held today (5th July) from 9:00 am to 3:00 pm. It will be approached inter alia byMałgorzata Krasnodębska-Tomkiel, the President of UOKiK,Bernd Langheine DG Competition, EC, and Bruno Lasserre, the President of French Competition Authority. During the event shall be discussed issues concerning transactions affecting the markets of many countries. Foreign and Polish experts shall present the legal regulations and administrative practice, inter alia, means of international cooperation, exchange of information and the protection of companies’ business secrects. It is the first event held by the Office under the Polish presidency in the EU Council.

The seminar will be transmitted online on the website www.prezydencja.uokik.gov.pl.

Additional information for the media:
Małgorzata Cieloch, Spokesperson for UOKiK
Department of International Relations and Communication
Pl. Powstańców Warszawy 1, 00-950 Warsaw
Tel. +48 22 827 28 92, 55 60 314, 55 60 430
faks +48 22 826 11 86
E-mail: [SCODE]bWFsZ29yemF0YS5jaWVsb2NoQHVva2lrLmdvdi5wbA==[ECODE]

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ICPENICNPolish Aid