The President of UOKiK has initiated proceedings against Orlen Oil to clarify whether the company fixed prices of Platinum motor oils with its distributors

The Office of Competition and Consumer Protection keeps monitoring the fuel market in Poland. Instituting the proceedings against Orlen Oil is one of effects of actions undertaken by UOKiK. The company belongs to Orlen capital group, dealing also with the production of motor oils used by drivers of passenger cars. The data collected by the Office revealed that Orlen Oil has committed its authorized distributors not to sell Platinum oilsat lower rates than the price indicated by the producer, reduced by a specified discount. Furthermore, the company entitles itself to check whether a given commission has been performed accordingly, and it has the power to dissolve a contract with a party whenever lower than the specified prices are applied.

This action can be regarded as a competition-restricting agreement. Joint fixing resale prices by business partners constitutes the prohibited practice – undertakings should act independently when fixing prices and take into account their own calculations.

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 institution. In the case of applying the competition-restricting practices, the President of UOKiK can impose on the undertaking 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 under the campaign „Przedsiębiorco, nie zmawiaj się!” (Entrepreneur, don't collude!) will certainly clear all doubts. The films are available at www.uokik.gov.pl. Businessmen interested in more detailed issues e.g. regarding the Office’s competence within the inspection with search or “passive” participation in a prohibited agreement will find the information in section questions and answers.

What sanctions can we expect for participation in a collusion, is the fine unavoidable? The series of radio broadcasts and films under the campaign „Przedsiębiorco, nie zmawiaj się!” (Entrepreneur, don't collude!) will certainly clear all doubts. The films are available at www.uokik.gov.pl

Topics of next broadcasts:

• The competence of UOKiK – investigative instruments in antimonopoly proceedings – broadcast on 18th April
  

• Crying over spilt milk … - fines for collusion participants? – broadcast on 25th April
  

• Worth admitting to collusion? – the leniency programme for the regretful – broadcast on 9th May
  

Additionally, we would like to encourage you to hear the radio broadcast on prohibited agreements, available on radio TOK FM. Every Wednesday at 1 p.m. 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 (available also 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]