The Czech competition authority, known as ÚOHS, has imposed a fine of 36.438 million CZK on Plaček Pet Products s.r.o., a leading distributor of premium pet food and supplies. The company was found to have set minimum retail prices for dog and cat food, which its retailers were required to follow from January 17, 2013, to March 3, 2022.

This vertical cartel lasted nearly a decade and disrupted competition not only in the Czech Republic but also in the EU market. Plaček Pet Products conditioned its business relationships with retailers on adherence to these price agreements and pressured them to raise prices to the established levels, even threatening sanctions for non-compliance.

Kamil Nejezchleb, the vice-chairman of ÚOHS, stated that vertical agreements on minimum resale prices inherently harm competition by preventing price competition, which is often the most significant factor for consumers.

In determining the fine, ÚOHS considered several mitigating factors. The company voluntarily ceased its anti-competitive practices immediately after the local investigation by ÚOHS and implemented appropriate measures. It informed retailers that setting the final selling price for their customers was their responsibility, fully cooperated with the authority, and facilitated the proof of the competition law violation. Additionally, Plaček Pet Products established a compliance program effective in relation to competition law in the relevant markets.

Plaček Pet Products s.r.o. is a significant distributor of premium pet food and supplies in the Czech market, distributing brands such as Brit, Carnilove, Ontario, and Eukanuba, as well as pet supplies from Beaphar and Repti Planet. The company also operates at the retail level.