A fine of 350 thousand zloty was imposed on Edytor by the President of the Office of Competition and Consumer Protection for abuse of its dominant market position. In the opinion of Cezary Banasiński, unlawful actions of “Gazeta Olsztyńska” and “Dziennik Elbląski” publisher were aimed at eliminating competitors from the market

In February 2004 the President of UOKiK initiated antimonopoly proceedings against Edytor. The Office suspected that the publisher of 23 press titles in Warmia and Mazury province - including “Gazeta Olsztyńska” and “Dziennik Elbląski” - abuses its dominant position in the regional advertising and local press markets.

During the proceeding conducted by UOKiK Branch Office in Bydgoszcz, it was found out that the share of Edytor in the market of daily general information press in Warmia and Mazury was about 80 percent and in some local markets (e.g. some counties) the position was almost monopolistic. The company had a very high (over 60 percent) share in the press advertising market in the province of Warmia and Mazury.

The investigation conducted by the Office confirmed that the publisher infringed the law by demanding that advertising agencies used exclusively its services. If an advertisement was placed with another publisher, the company demanded refund of all rebates granted earlier. Such clauses - in the opinion of the President of UOKiK - are conducive to taking over large market shares in advertising in Warmia and Mazury and thus eliminating other titles, independent of Edytor.

In the opinion of the antimonopoly authority, each company is entitled to promote its own publications by advertising campaigns or by launching new titles. Edytor, however, was involved in a policy aimed not at promoting its own brand but at destroying, or significantly restricting the operation of other entities. Such activities constitute an unlawful use of the publisher’s economic potential towards weaker competitors, aimed at restricting their access to revenues and in effect eliminating publishing and media initiatives independent of Edytor.

The proceeding confirmed also, that Edytor was using other practices against its competitors. For instance, when an independent local weekly newspaper was published, the company added to “Gazeta Olsztyńska” an insert free of charge on subject similar to the competitive title and published it a day earlier. Such a situation took place at last twice, when in response to the publication of “Nowoczesna Olsztynianka" and “Tygodnik Warmiński”, Edytor published inserts "Cała Ty" and "Nasza Warmia”. Once the competitive title addressed to women was no longer published, the company discontinued the publication of its own insert.

In view of a major difference in economic potential between Edytor and the publishers of local periodicals, the mechanism described above was - in the opinion of the President of the Office - very destructive to local businessmen independent of the publisher.

In the opinion of the President of the Office, the fine of 350 thousand zloty imposed upon Edytor fulfils a repressive and preventive role. The practices restricting competition may result in a total elimination of pluralism in a local press market. Moreover, they may not only pose a threat to local competition but also a threat to local democracy, based on control of public life by independent competing media.

The decision may be appealed to the Court of Competition and Consumer Protection.

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]