09.02.2025 | Croatian competition authority
The Croatian Competition Agency (CCA) has found the Croatian Hunting Association (CHA) guilty of abusing its dominant position in the hunter training market from January 1, 2022, to March 31, 2024. The CCA determined that the CHA engaged in predatory pricing by charging fees below the cost of providing hunter training services, with the intent to eliminate competition and maintain its market dominance.
In its ruling on December 23, 2024, the CCA highlighted that while holding a dominant position is not illegal, the CHA had a special responsibility to ensure its conduct did not harm competition. The CHA's pricing strategy was deemed predatory as it set prices at HRK 400 (approximately EUR 53.09) excluding VAT, which did not cover the actual costs of the training services.
The CCA's investigation revealed that the CHA utilized profits from its monopoly in related markets to subsidize its training services, thereby threatening competition in markets where it did not hold a dominant position. This cross-subsidization was found to be in violation of competition rules, as it allowed the CHA to sustain predatory pricing practices.
As a result of these findings, the CHA was fined €89,935 based on its 2023 turnover in the relevant market. The CCA also mandated that the CHA implement remedies to address the negative impacts of its practices, including maintaining separate accounts for its training services and monopoly activities, and establishing a transparent pricing system that reflects competitive rates.
The CHA is required to comply with these remedies within four months of receiving the CCA's decision, with potential penalties for non-compliance.
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