13.01.2025 | Polish competition authority
The Polish competition authority, UOKiK, has taken action against Empire Brands, a distributor of pet food, for participating in a price-fixing scheme with its business partners. The company was found to have imposed resale prices on its partners for selling its products online, which led to inflated prices for consumers.
Empire Brands controlled the pricing of its pet food in online stores, mandating that its partners could not sell below the prices set by Empire in its own online store. This practice not only violated national competition laws but also breached European Union regulations, as it potentially affected trade between member states.
As a result of these illegal practices, UOKiK has imposed a fine of 352,821 zloty on Empire Brands, along with additional penalties on two of its managers, who were directly involved in the anti-competitive agreement. The fines for the managers amounted to 82,250 zloty and 39,000 zloty, respectively.
The maximum penalty for participating in such anti-competitive agreements can reach 10% of a company's turnover and up to 2 million zloty for managers. However, companies can avoid severe penalties through a leniency program, which allows them to reduce or eliminate fines by cooperating with UOKiK and providing evidence of the illegal agreement.
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