• Could changes to the terms and conditions of the Otodom classified ads platform restrict competition?
• The President of UOKiK has launched an investigation into the matter.
• The new terms and conditions may have an impact on estate agents.

The President of UOKiK has received numerous reports regarding significant increases in fees for property listings on the Otodom platform, which belongs to the OLX group.

According to information received by UOKiK, changes to Otodom’s terms and conditions include the introduction of a new billing model. This model is to be based, among other things, on setting advertising fees according to the total value of all properties offered by a given user during a specified billing period. Consequently, the amount of the fees is to vary for individual entities and also depend on prices in the local market and its specific characteristics, over which advertisers have no influence. This may be disadvantageous for estate agents. The complaints also concern the lack of transparency in the rules for setting fees, as well as the differentiation of terms of cooperation with estate agencies.

– We have decided to investigate whether the new rules breach competition law. We are verifying whether the owner of the Otodom platform holds a dominant position, that is, whether it can act to a significant extent independently of competitors, trading partners, and consumers. We will examine whether the new rules could result in a restriction of competition in the market, including between estate agents – says Tomasz Chróstny, President of UOKiK.

Under competition law, there is a presumption that if an undertaking’s share of the relevant market exceeds 40 per cent, it holds a dominant position. A dominant undertaking may not abuse such market power or use it to the detriment of its trading partners, competitors, and consumers.
 
We would also like to remind you that the President of UOKiK may intervene in the prices charged by businesses only where these result from a breach of competition law – such as agreements restricting competition or the abuse of a dominant position. In such a situation, the President of UOKiK still does not interfere with price levels, and can only influence them indirectly, by eliminating practices prohibited by law.

The investigation is conducted in relation to the matter at hand, not against the undertaking. If the analysis shows that a breach of competition may have occurred, the President of UOKiK will initiate antitrust proceedings. Abuse of a dominant position is punishable by a fine of up to 10 per cent of the undertaking’s annual turnover.

Your report matters!

UOKiK runs a programme to gather information from anonymous whistleblowers. Would you like to inform us about practices that restrict competition? Visit uokik.whiblo.pl and use the simple form. The system ensures complete anonymity, including vis-à-vis UOKiK.