Have manufacturers of chipboards and fibreboards - Kronospan Szczecinek, Kronospan Mielec, Pfleiderer Grajewo, Pfleiderer Prospan and Kronopol - concluded a competition-restricting agreement? The proceedings instituted by the President of UOKiK will clarify the case. What’s more, Kronopol might have breached the law by fixing prices with its distributors 

Competition-restricting agreements, e.g. price collusions can be entered into both by competitors (horizontal agreements) and undertakings operating at different levels of economic process, e.g. a producer and distributors (vertical agreements). Recently the President of UOKiK has commenced two antimonopoly proceedings in this respect.

Taking into account the practice concerned may negatively affect the trade between the European Union Member States, the already instituted proceedings will verify whether apart from Polish, also the EU antitrust rules have been infringed

The first regards the horizontal agreement between the following companies being manufacturers of wood-based panels: Kronospan Szczecinek, Kronospan Mielec, Pfleiderer Grajewo, Pfleiderer Prospan and Kronopol.The data collected by UOKiK also during the inspection with search at the undertakings’ premises revealed that they could have jointly fixed the prices of chipboards and fibreboards and additionally could have exchanged business information on conditons of sale for these products. Taking into account the practice concerned may negatively affect the trade between the European Union Member States, the already instituted proceedings will verify whether apart from Polish, also the EU antitrust rules have been infringed.

The data collected during the explanatory proceedings concerning the practice applied by the manufacturers of wood-based boards provided the basis to institute another proceedings – against Kronopol. In agreements concluded with distributors of its products, the undertaking committed these distributors not to sell chipboards and fibreboards at the amount below the price of purchase increased by a minimum profit margin of a distributor, as stipulated in the agreement.

According to the Act on competition and consumer protection, the antimonopoly proceedings in cases regarding the application of competition-restricting practices should be concluded within a maximum of five months from the date of its institution. In the case of infringement of the prohibition of applying the competition-restricting practices, the President of UOKiK can impose on each undertaking participating in such agreements a fine of up to 10 percent of revenue gained in the year preceding the issuance of the decision.

A participant to a prohibited agreement who intends to avoid the financial penalty may benefit from the leniency programme. Undertakings can submit a formal application personally at the premises of the Office of Competition ond Consumer Protection in Warszawa, to the employee of UOKiK for official record, by mail, fax or email at: [SCODE]bGVuaWVuY3lAdW9raWsuZ292LnBs[ECODE]. Answers to all questions regarding the programme, even anonymous, are provided by UOKiK lawyers under phone number: +48 22 55 60 555.

Why do collusions pose a threat to competition? What exactly is prohibited and allowed by the law? What’s the difference between fixing prices and following their level? What sanctions can we expect for participation in a collusion, is the fine unavoidable? The series of radio broadcasts and films will certainly clear all doubts arising with the campaign „Przedsiębiorco, nie zmawiaj się!” (Entrepreneur, don't collude!). The said films will be available at www.uokik.gov.pl. Businessmen interested in more detailed issues of Office’s competence within the inspection with search or “passive” participation in a prohibited agreement will find the information in section questions and answers.

Topics of broadcasts:

1. Why do collusions threaten competition? – broadcast on 28^th March
2. Activities prohibited and allowed by the law? – broadcast on 4^th April
3. False beliefs possibly resulting in breaking the law – broadcast on 11^th April
4. The competence of UOKiK – investigative instruments in antimonopoly proceedings – broadcast on 18^th April
5. Crying over spilt milk … - fines for collusion participants? – broadcast on 25^th April
6. Worth admitting to collusion? – the leniency programme for the regretful – broadcast on 9^th May

Additionally, we would like to encourage you to hear the radio broadcast on prohibited agreements, available on radio TOK FM. Starting from 4^th April, each Wednesday at 1 p.m. for the period of 6 weeks, Maciej Głogowski will talk to experts in competition law in programme “Raport Gospodarczy”.

Furthermore, from 28th March till the end of this year the articles of experts from UOKiK concerning the antitrust law, in particular prohibited agreements, will be published in Gazeta Prawna daily (also available at the paper’s internet portal). The series of articles was commenced with the interview with the President of UOKiK, Mrs Małgorzata Krasnodebska-Tomkiel, considering the proposed changes to the Act on competition and consumer protection.

Additional information for the media:
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]