Over 2,000 proceedings and fines exceeding 11 million zloty - those are the effects of the operation of the Office of Competition and Consumer Protection in 2003. A report on the activity of UOKiK was submitted today to the Parliamentary Commission of Economy

In 2003 UOKiK conducted 289 antimonopoly proceedings: 60 of those concerned competition restricting agreements and 229 - abuse of dominant position. In the result 188 decisions were issued by President of the Office. Among the most interesting cases there were agreements between the A-4 highway operator (Stalexport-Transroute) and four companies providing road assistance services, which were considered to be unlawful as directed against competition. They concerned joint price fixing for highway services on the paid stretch of the A-4 highway and prevented other towing companies from entering the market. Decision of the President of UOKiK was confirmed by a verdict of the Court of Competition and Consumer Protection which also maintained the fines imposed on the enterprises, totalling over 700 000 zloty. Another important proceeding concerned the manner in which Telekomunikacja Polska (Polish Telecom) implemented changes to its ISDN service. It was initiated by the Office in view of numerous complaints by consumers. In a result, the President of the Office decided that the action of TP is an unlawful abuse of its dominant market position and imposed a fine of 7 million zloty. The decision is to be immediately executed.

Besides, UOKiK conducted 394 explanatory proceedings on competition protection.

The Office reviewed last year 194 matters concerning mergers and acquisitions. None of the 151 decisions prohibited concentration (there were two conditional decisions).

Within consumer policy, UOKiK conducted in 2003 jointly 1,705 proceedings. 628 concerned practices infringing collective consumers’ interests. In the result, the Office issued almost 100 decisions ordering discontinuation of unlawful practices. Special attention should be paid to proceedings against TP concerning diallers - software that gets installed on computers during viewing of some Internet pages. They change (usually without the user’s knowledge) the telephone number to which the modem connects the computer to the network - from a normal line to a premium-rate phone numbers. As a result, clients receive high telephone bills for services they have not ordered. UOKiK recognised such practices of TP as infringing collective consumer’s interests. 319 proceedings concerned the breach of the Act on combating unfair competition. In 2003, the Office also conducted 758 proceedings on abusive clauses. In this area, control covered the activity of undertakings in power engineering industry, banks and tourist agencies, as well as construction companies and cable television operators. By the end of the year, 353 proceedings were closed, as the undertakings adjusted their contracts as required by UOKiK; 99 cases were submitted to the Court of Competition and Consumer Protection.

Last year the President of the Office issued 853 opinions on state aid, of which 166 opinions concerned aid programs. Answers were also provided to numerous questions concerning interpretation of the provisions of the Act on admissibility and supervision of state aid to undertakings.

Since among the competence of UOKiK there is also co-ordination of activities relating to market supervision, 86 cases concerning product safety that were started in previous years, were closed. UOKiK also started investigation in 69 new instances. In 44 of those, the Office found it justifiable to initiate administrative proceedings. Practice shows that most of the enterprises voluntarily adjust their practices to the requests of the President of the Office.

In 2003 UOKiK, together with Trade Inspection, started actions aimed at eliminating irregularities in the liquid fuel market (relating primarily to poor quality of fuels). 1,235 fuel stations were controlled with respect to fuel quality and 1,317 stations with respect to lawfulness and reliability of operation. The experience was used in drafting an act on monitoring and control of liquid fuel quality, on which the control is based this year.

Last year UOKiK prepared drafts of ten acts. The most important was an amendment to the Act on competition and consumer protection as well as on the Act on protection of some consumer rights and liability for damage caused by hazardous products. The Office also prepared a draft Act on general product safety and a draft Act on proceedings in matters concerning state aid.

President of UOKiK provided opinions to 2,446 government draft bills as well as opinions for the Government or Parliamentary drafts. When providing opinion on a document, attention was paid primarily to its impact on competition, its effects in the sphere of protection of consumer interests and their compliance with the principles of state aid provision to enterprises. The Office submitted its comments to draft bills on court fees in civil cases, on freedom of economic activity, on professional self-governments, amendment to the law on post office, banking law and the law on public securities trading as well as regulations concerning restructuring of iron and steel metallurgy and paid highways.

Additional information:
Elżbieta Anders, Spokesperson of UOKiK
International Relations and Communication Department
Office of Competition and Consumer Protection
Pl. Powstańców Warszawy 1, 00-950 Warsaw
Ph.: (+48 22) 827 28 92, 55 60 106, 55 60 314
E-mail: [SCODE]ZWFuZGVyc0B1b2tpay5nb3YucGw=[ECODE]