Fixed prices of taxi services, no responsibility for heat supply interruptions, unjustified payments for connecting to the water supply system – just to set a few examples of decisions issued by the President of the Office of Competition and Consumer Protection in cooperation with the Branch Office in Wrocław

For 21 years  UOKiK’s Branch Office in Wrocław has investigated and eliminated unlawful practices of undertakings operating in Dolnośląskie and Lubuskie voivodeships. Also, it issues decisions of great importance for consumers and undertakings throughout Poland. Early 2012, it issued 15 decisions recognizing the practices as contary to law. Additionally, there are still 53 pending proceedings. The Office deals with e.g. standard forms of agreements used by local suppliers of heating, recipients of waste, and it also investigates whether the regional monopolists do not abuse their dominant position. The recently concluded proceedings regarding TAXI company from Dzierżoniów, Rudna commune (gmina), and Wojewódzkie Przedsiębiorstwo Energetyki Cieplnej in Legnica (the regional supplier of heat) clearly indicated the violation of law.

The latest decision prepared by the Branch Office in Wrocław is related to three taxi companies from Dzierżoniów (Dolnośląskie voivodeship). Initiated in September 2011, the investigation showed that the taxi associations Stowarzyszenie Radio Taxi Serce, Stowarzyszenie Taksówkarzy Dzierżoniowskich Radio Taxi Bis and Sudety Zrzeszenie Taksówkarzy Ziemi Dzierżonioweskiej had fixed rates for taxi services. The unlawful agreement was in effect from 2007 to 2011. The data collected  by UOKiK showed that the companies increased their prices to the same level: PLN 5 of initial fee and PLN 1.2 for each consecutive kilometre. The competing taxi drivers agreed the prices at taxi ranks, and then provided them to the management boards of their companies which issued the final decisions concerning the price increase. The practice of these taxi companies caused the elimination of price as a competitive factor in transport services. Pursuant to the Act on competition and consumer protection it is prohibited to enter into agreements which aim at or result in restricting competition, specifically fixing prices. It is one of the most serious violations of the antitrust law. The maximum penalty can reach up to 10 percent of undertakings’s revenues.

For restricting competition, the President of UOKiK imposed on the undertakings financial penalties respectively: Radio Taxi Serce - PLN 2.46 thousand, Radio Taxi Bis - PLN 3.2 thousand, Sudety - PLN 1.34 thousand. The undertakings have ceased the unlawful practice.

Also, the practices of Rudna commune have been recognized as an abuse of a dominant position. As a result of the investigation commenced in September 2011, UOKiK found that the owner of the property, who wanted to have it connected to the water supply system, has to carry out works outside his possession at his own expense. According to law, the owner is required to cover the costs of works related to such connection only within the their own property. Any other works are the responsibility of the water supply company. According to UOKiK, Rudna commune demands its customers to incur unjustified costs and for this reason fined it with PLN 8 757.38 for applying the competition-restricting practice.

The President of UOKiK had also concerns regarding the clauses applied by Wojewódzkie Przedsiębiorstwo Energetyki Cieplnej in Legnica (WPEC), which supplies heat in Legnica, Lubin, Głogów and Złotoryja, in relation to the provisions which state that the company bears no responsibility for heat supply interruptions due to force majeure. At the same time the undertaking had imprecisely specified situations in which it would be released from any liability - thus it allows for free interpretation. As a consequence, a  consumer cannot seek redress even if such interruptions could have been prevented. The President of UOKiK decided that WPEC in Legnica violated the collective consumer interests and imposed on the entity a penalty of PLN 98 929.

All of these decisions have not become effective yet - they can be appealed against to court.

Last month UOKiK’s Branch Office in Wrocław issued a range of decisions concerning abuse of a dominant position on the market of waste disposal and water supply companies against Trzebnica and Wisznia Mała communes as well as decisions concerning the violation of collective consumer interests in relation to heat supply services against Zakład Energetyki Cieplnejin Bolesławiec, Przedsiębiorstwo Gospodarki Miejskiej in Polkowice, Przedsiębiorstwo Energetyki Cieplnej in Wałbrzych, Przedsiębiorstwo Gospodarki Komunalnej in Strzelce Krajeńskie and ECO in Jelenia Góra. All these undertakings have voluntarily declared to change their practices.

The elimination of abuse on local markets is possible thanks to the expanded structure of UOKiK - there are nine branch offices which take actions aimed at protecting competition. The Branch Office in Wrocław is one of the oldest ones. Since 1991 it has issued 785 decisions concerning practices impeding competition and violating collective consumer interests.

Additional information for media:
Zbigniew Jurczyk, Director of the Branch Office
UOKiK in Wrocław
Tel. 71 344 65 87
E-mail: [SCODE]d3JvY2xhd0B1b2tpay5nb3YucGw=[ECODE]

Małgorzata Cieloch, Spokesperson for UOKiK
Department of International Relations and Communication
Pl. Powstańców Warszawy 1, 00-950 Warszawa
Phone: +48 22 55 60 106
Fax: +48 22 826 11 86
E-mail: [SCODE]bWFsZ29yemF0YS5jaWVsb2NoQHVva2lrLmdvdi5wbA==[ECODE]