The Czech Office for the Protection of Competition (ÚOHS) has fined K + B Progres, a.s. 9,904,000 CZK for violating both national and EU competition rules. The company was found guilty of entering into and enforcing prohibited vertical agreements that set minimum retail prices for the resale of electrical appliances.

K + B Progres is a leading distributor of consumer electronics and owns the ECG brand of household appliances. It distributes various well-known brands in the Czech market and holds a controlling stake in companies such as expert ČR and Elektrocentrum, s.r.o.

According to the ÚOHS decision, K + B Progres engaged in anti-competitive behavior from 2018 to June 2023 by imposing minimum retail prices on its buyers, monitoring compliance, and applying penalties for violations. This conduct disrupted competition in the markets for small and large household appliances and consumer electronics in the Czech Republic, and was deemed capable of affecting trade between EU member states, leading to a breach of EU competition law.

In determining the fine, the ÚOHS considered the severity and duration of the infringement. However, due to the company's cooperation during the investigation, including a leniency application and the implementation of a competition compliance program, the fine was significantly reduced to 9,904,000 CZK. K + B Progres was also prohibited from engaging in such agreements in the future.

Vertical price-fixing agreements, where suppliers or distributors prohibit retailers from selling goods below a set price, lead to artificial price uniformity and increased price levels for consumers. The ÚOHS has imposed substantial fines in recent years for such practices, particularly in the electrical appliance and animal feed sectors. Recently, the European Commission also imposed fines in the tens of millions of euros on three major fashion brands for similar anti-competitive behavior, emphasizing that dictating prices to retailers is unacceptable.