• For over five years, the prices of Decora’s range of flooring panels and related accessories were artificially inflated as a result of price-fixing and market-sharing.
• This meant higher prices for people renovating or furnishing flats and houses.
• The President of UOKiK has imposed fines totalling nearly PLN 34 million on Decora and Bel-Pol, as well as on two managers from these companies.

The decision by the President of UOKiK concerns price-fixing and market-sharing between Decora and Bel-Pol. The unlawful agreement lasted from March 2019 to April 2024. It concerned vinyl panels, underlays for vinyl and laminate panels, skirting boards and floor profiles manufactured by Decora. Much of the evidence was obtained during searches of the companies’ premises.

– For over five years, it was impossible to buy flooring panels and related accessories from Decora’s range for less than the prices set by the participants in the collusion. This means that people who were furnishing or renovating flats and houses during that time were overpaying. I have imposed fines of nearly PLN 34 million for price-fixing and market-sharing – says UOKiK President Tomasz Chróstny

Price-fixing

As a reminder, I am resending the online retail price list for underlay. Please could you check this urgently to avoid any misunderstandings (e-mail between Decora and Bel-Pol staff).

Decora imposed retail prices for panels and accessories on its trading partners – wholesalers and retailers. It provided them with price lists which they were required to follow. The company specified in these lists the minimum prices below which products could not be sold. Decora also specified promotional prices which shops were permitted to use.

Price monitoring and consequences

If a shop doesn’t get it and keeps the wrong price, we block them, and if nothing happens for a while, we take away their displays (message on a messaging app between Decora and Bel-Pol employees).

Decora monitored the prices charged by retailers and intervened if any of them sold panels and accessories at a lower price. This risked the loss of discounts, the suspension of deliveries, and even the removal of goods already in the shop.

Retailers’ involvement in the collusion

Why did we raise our prices whilst one outlier kept their price at PLN 142? (e-mail from a retailer to a Decora employee).

Decora’s business partners also actively participated in the illegal agreement, including one of its largest distributors – Bel-Pol. Sellers monitored each other’s prices and informed the manufacturer if any of them broke ranks. Bel-Pol also monitored the activities of its trading partners who sold Decora’s range of laminate flooring and accessories, and intervened in the event of lower prices.

Market sharing

We have a partnership agreement; we do not make offers to each other’s customers (e-mail between Decora and Bel-Pol employees).

The second unlawful practice, alongside the price-fixing agreement, was market sharing. Decora and Bel-Pol agreed which wholesale customers would be served by each company. Bel-Pol was not to sell floor panels and floor panel accessories to undertakings which purchased them from Decora. This meant that wholesale customers assigned to Decora could not choose for themselves from whom they would buy products.

Fines for individuals

Today, I instructed that the selling prices of underlays be increased (e-mail between Bel-Pol employees).

The President of UOKiK also imposed fines on two members of the management teams at Decora and Bel-Pol. They were directly involved in the unlawful arrangements, including disciplining sellers who sold panels and accessories at prices lower than those agreed as a result of the collusion.

Reduction of the fine for Bel-Pol

During the proceedings, Bel-Pol submitted an application to be covered by the leniency programme. The company cooperated with the President of UOKiK, including by providing new information that the subject of the unlawful agreement also included underlays for laminate flooring. Consequently, the fines for Bel-Pol and the company’s manager were reduced by 50 per cent. In addition, the company opted for the settlement procedure, which is why the financial penalty was reduced by a further 10 per cent. It could not expect to avoid the penalty entirely, as it submitted its application after a search had been carried out, i.e. at a stage when evidence of the collusion had already been gathered.

The total amount of fines in this case was PLN 33,927,343.75. The fines imposed by the President of UOKiK on individual participants in the agreement are as follows:

• Decora – PLN 28,344,000.00
• Bel–Pol – PLN 5,290,000.00
• Tomasz Ginter (Decora) – PLN 165,375.00
• Marcin Nawrocki (Bel-Pol) – PLN 127,968.75

The decision is not final and may be appealed against to court.

You can also seek redress

Anyone who has suffered a loss as a result of a breach of competition law may file a civil lawsuit against any of the entities that have broken the law. Claims for compensation may be pursued under the Act on Private Enforcement, which came into force in 2017. The President of UOKiK has prepared a study in which he provides a closer look at the regulations on these issues.

The leniency programme

The maximum fines for participation in an anti-competitive agreement is 10 per cent of turnover for business entity and PLN 2 million for managers. Severe penalties for participation in collusion can be avoided through the leniency scheme. It offers businesses involved in an illegal agreement and managers responsible for collusion an opportunity to reduce a sanction or, in some cases, avoid it altogether. It is intended for those who agree to cooperate with the President of UOKiK as a “crown witness” and provide evidence or information regarding the existence of a prohibited agreement. We encourage those interested in the leniency scheme to contact UOKiK at a dedicated phone number: 22 55 60 555. UOKiK staff will answer any questions about the leniency programme, including anonymous ones.

A platform for whistleblowers

We also remind you that we have a platform for obtaining information from anonymous whistleblowers. Do you wish to inform UOKiK about competition-restricting practices? Visit https://uokik.whiblo.pl/ and fill out a simple form. The system we use guarantees full anonymity, including from UOKiK.