Ski, snowboard and cycling equipment – these are goods whose prices could have resulted from price fixing. The President of UOKiK has instituted three antimonopoly proceedings concerning fixing prices by distributors and retail sellers

Under the antimonopoly law, it is prohibited to conclude agreements which have as their object or effect the restriction of competition. The experiences of UOKiK demonstrate that the prohibited practice usually consists in fixing the minimum or fixed resale prices of products by undertakings operating at different levels of trade e.g. producer-wholeseller, distributor-retail seller

Under the antimonopoly law, it is prohibited to conclude agreements which have as their object or effect the restriction of competition. The experiences of UOKiK demonstrate that the prohibited practice usually consists in fixing the minimum or fixed resale prices of products by undertakings operating at different levels of trade e.g. producer-wholeseller, distributor-retail seller. Concluding such agreements causes that consumers are left with the limited possibility of paying less for products being subject to the collusion; whenever a producer or exclusive distributor is party to the agreement, it can occur consumers are utterly deprived of this possibility. Under such circumstances the practice may affect the whole market and can result in elimination of competition at all levels of trade. In September 2012, the President of UOKiK instituted three proceedings concerning agreements between wholesale distributors of goods and retail sellers.

The Office will examine the operation of Sport&Freizeit, a company being the official representative of ski equipment producer – Fischer. The data collected by UOKiK reveals this undertaking, jointly with its trading partners, fixed minimum retail prices of skis and ski accessories. Intersport Polska, the owner of chain stores, is suspected of participating in the collusion. The completed explanatory proceedings proved that Sport&Freizeit could have fixed the resale prices with retail sellers. Moreover, the company could have monitored applying these prices by entities and potentially imposed discipline on undertakings which failed to comply with these arrangements.

Another proceedings were instituted against Banaszek Duda Company (BDC) and Profesjonalna Grupa Rowerowa. The first company is the importer and distributor of bicycles and cycle racing equipment as well as the exclusive supplier of multi-brand products. Profesjonalna Grupa Rowerowa operates as a purchasing group composed of several shops with bicycles. The Office will inspect if these companies have jointly fixed the retail sale prices for products imported by BDC.

Furthermore, the President of UOKiK initiated proceedings against Missions, which owns the exclusive right to distribute multi-brand snowboard gear.  The instituted proceedings is aimed at verifying whether imposing on trading partners the obligation to apply the resale prices strictly determined by Missions as well as discounts and reduction of prices constitutes the prohibited practice.

Partcipants to collusions who intend to avoid a fine can benefit from the leniency programme. The entity, which will provide substantial evidence on the existance of such agreement, was not agreement’s initiator and did not induce other undertakings to prohibited actions, may even expect full immunity from fines

Pursuant to provisions of the Act on competition and consumer protection, proceedings concerning the competition-restricting practices should be concluded within five months from the day of institution. In case of particularly complex cases, the proceedings can take even more time. If the allegations are confirmed, such undertakings may be imposed fines amounting to 10 % of their revenue in the year preceding the year of issuing this decision.

Partcipants to collusions who intend to avoid a fine can benefit from the leniency programme. The entity, which will provide substantial evidence on the existance of such agreement, was not agreement’s initiator and did not induce other undertakings to prohibited actions, may even expect full immunity from fines.

Additional information for the media:
Małgorzata Cieloch, Spokesperson for UOKiK
Department of International Relations and Communication
Pl. Powstańców Warszawy 1, 00-950 Warszawa
Phone: +48 22 827 28 92, 55 60 106, 55 60 314
Fax: +48 22 826 11 86
E-mail: malgorzata.cieloch@uokik.gov.pl