The Court of Competition and Consumer Protection (SOKiK) upheld the decision by the President of UOKiK prohibiting the takeover of Energa (a company seated in Gdańsk) by Polska Grupa Energetyczna. In January 2011 the Office determined the transaction would result in a restriction of competition. Today the court wholly took the stance of UOKiK

The court ruling regards the decision of the President of UOKiK issued in January, 2011. Then the President of UOKiK prohibited taking control over Energa (a company from Gdańsk) by Polska Grupa Energetyczna. PGE group is the biggest energy producer in Poland. The company is composed of 70 companies dependent directly or indirectly, mainly dealing with production, retail and wholesale as well as distribution of energy. Both participants to the transaction are companies with majority share package of the State Treasury. Notifying UOKiK of the intention of concentration resulted from the privatization process of Energa conducted by the Ministry of Treasury.

A year and a half before, UOKiK decided that the intended transaction would result in a significant restriction of competition on the general market of electric energy. According to UOKiK, the concentration of PGE, enjoying a strong market position, with Energa would result in creation of entity which could impose sales conditions and fix energy prices, in a way undisturbed by its competitors and contractors alike. In the said decision UOKiK pointed the fact that all recipients and consumers would have to pay for this. PGE was prohibited to take over Energa (the undertaking seated in Gdańsk).

— First of all today’s verdict is of vital importance for all market participants. We are glad that independent court sustained all arguments pointed in our decision. According to the court UOKiK’s arguments are still binding — Małgorzata Krasnodębska-Tomkiel, the President of UOKiK.

Polska Grupa Energetyczna exercised its right and lodged an appeal against the decision of UOKiK on 28^th of January 2011. Today, at the first trial the Court of Competition and Consumer Protection shared the reasoning of the President of UOKiK stating that PGE is not permitted to take control over Energa (a company seated in Gdańsk).

The decision is not final – under the law the company may lodge an appeal.

Decisions prohibiting concentration are very rare. Since 2004 the President of UOKiK has banned only six transactions. Regarding appeals lodged by undertakings, the court always upheld the decisions of the Office of 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]