PKP Cargo abused its dominant market position by unlawful discrimination of one of the company’s contractors. As a result, the undertaking was imposed a fine exceeding PLN 16.5 mln

Under the law, undertakings are not prohibited to enjoy a dominant position on a given market. It is not allowed, however, to use their dominance in order to restrict competition. The antimonopoly law lists exemplary practices which must not be applied by dominant entities on the market, e.g. it is prohibited to counteract shaping conditions necessary for the creation or development of competition.

Such practices were applied by PKP Cargo – a dominant entity on the domestic market of rail freight carriage. The proceedings in this case were initiated by the Office in August 2012, following a complaint filed by Majkoltrans (one of the company’s contractors) operating in the shipping industry. When providing services to its contractors, the entity uses inter alia carriage services by PKP Cargo.

The proceedings by UOKiK revealed that PKP Cargo refused to render services to this undertking within the area of three stations in Dolnoślaskie voivodeship, located close to coal mines. As a result, the entity lost its key trading partners who, faced no alternative,  were forced to conclude an agreement with companies belonging to the PKP Cargo capital group. Thus, the abuse of a dominant market position by the dominant undertaking affected not only Majkoltrans, but also its contractors who were deprived of choosing a carrier at their discretion.

For the abuse of a dominant position PKP Cargo was imposed a fine exceeding PLN 16.5 mln (PLN 16 575 676.95). The decision is not final – the undertaking may lodge an appeal to the court.

This has been the next decision concerning the infringement of antimonopoly law by PKP Cargo. The company was imposed fines twice before - in 2004 (in June and December), and in 2009 - and these decisions are final.  Moreover, in 2012 the carrier was fined for delay in executing the decision, however, this is not a final judgement in the case.

Additional information for the media:
UOKiK Branch Office in Wrocław
Phone: +48 71 344 65 87
E-mail: wroclaw@uokik.gov.pl

Małgorzata Cieloch, Spokesperson for UOKiK
Department of International Relations and Communiaction
Pl. Powstańców Warszawy 1, 00-950 Warszawa
Phone: +48 22 827 28 92, 55 60 314
Fax: +48 22 826 11 86
E-mail: malgorzata.cieloch@uokik.gov.pl