Fines for a total amount of over 1.6 million zloty were imposed by the President of the Office of Competition and Consumer Protection on the publisher and distributor of the Polish version of “Harry Potter and the Order of the Phoenix”. That was due to the fact that books may not be sold at a price which would differ by more than 10 percent from the price printed on its cover

In November 2003 there was a meeting of representatives of Harbor Point - the exclusive publisher of “Harry Potter and the Order of the Phoenix” in the Polish language version with wholesale distributors (EMPiK, Wikr, Ogólnopolski System Dystrybucji Wydawnictw-Azymut, Firma Księgarska Jacek Olesiejuk, DiSO and Wkra). All participants signed an agreement that they would not sell the book at a retail price differing by more than 10 percent from the price printed on the cover. For a paperback issue it was 49 zloty and for the hard cover issue - 59 zloty. The signatories declared, that they would inform its contractors (bookstores) of the agreement and they would enforce its implementation. At a later date, the contract was also signed by Matras and Bertelsmann Media. The total share of the distributors who entered into the agreement on the sale of the fifth volume of “Harry Potter” exceeded 80 percent.

As evidence collected by UOKiK Branch Office in Katowice, participants of the agreement took steps to implement its contents. Harbor Point was informed of instances of sale of “Harry Potter and the Order of the Phoenix” at a lower price, than the one agreed. Besides, wholesalers instructed owners of bookstores in writing, or orally to sell the book at a price agreed earlier.

In the opinion of the President of UOKiK, the direct effect of measures taken by participants of the agreement was first of all determination of minimum retail prices, which resulted in restricted competition. In effect, consumers were forced to buy the book at a price determined by participants of the agreement (for instance higher by 20 percent than the previous volume - „Harry Potter and the Goblet of Fire”). A similar situation would not have occurred in case of undisturbed competition. The consumer would then choose the most favourable market offer.

In view of the above, the President of UOKiK considered the activities of Harbor Point and other participants as an agreement restricting competition and ordered to have it discontinued. Fines for a total amount of over 1.6 million zloty (including 590 thousand zloty iposed on Harbor Point) were imposed on the publisher and the distributors. When deciding the amount of the penalties, the preventive and repressive roles were taken into consideration as well as the fact that neither of the enterprises had been punished earlier for infringing upon the antimonopoly law.

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]