• President of UOKiK, Tomasz Chróstny, has imposed fines totaling almost PLN 8 million on the following companies: Volkswagen Poznań and Solaris Bus & Coach for making payment gridlocks.
• Moreover, he has instigated 30 proceedings into business entities that may fail to pay to their suppliers on time.
• In particular, payment gridlocks affect SME entrepreneurs who provide the highest number of jobs and are responsible for almost half of the GDP value in Poland.

President of UOKiK has imposed subsequent fines on two large companies generating payment gridlocks. The fined entities are: Volkswagen Poznań - van manufacturer and Solaris Bus & Coach gridlocks bus and coach manufacturer. These are the subsequent entrepreneurs within a widely-understood automotive industry, both in manufacturing and in sales, which were fined for generating payment backlogs.

The fine for Volkswagen Poznań is more than PLN 4.7 million. The investigation found that during the three months under investigation alone, the entrepreneur was late in paying invoices to nearly 1,700 contractors. The other fine of more than PLN 3 million was imposed on Solaris Bus & Coach which was late in paying more than 32,000 invoices to nearly 1,700 contractors in the period between July and September 2020.

Throughout 2023, President of UOKiK issued 52 decisions on entrepreneurs who did not pay to their contractors on time and imposed more than PLN 40 million in fines.

– Payment gridlocks are one of the biggest problems in the Polish economy. It's also an obstacle to business for smaller entrepreneurs as it raises costs and has the effect of reducing employment or investment. Timely receipt of receivables and the related liquidity is a basic requirement for the survival of smaller entities. This is why the fight against gridlocks is so important – says President of UOKiK, Tomasz Chróstny.

Initiated proceedings

In 2023, President of UOKiK initiated administrative proceedings against another 30 companies whose payment discipline raised the greatest doubts as a result of the analyses. These are: Adient Seating Poland, Amcor Specialty Cartons Polska, Arcelormittal Warszawa, Avon Operations Polska, Carlsberg Supply Company Polska, Cetes Cosmetics Poland, Contimax, Electra M&E Polska, Elektrobudowa, Eurogate Logistics, Federal-Mogul Gorzyce, GKN Driveline Polska, Hurtownie Elektryczne Kopel, Ins-El, Leroy-Merlin Polska, Liugong Dressta Machinery, Marelli Aftermarket Poland, Medicare Galenica, Neptun, Newag, Nowel, Prima Sosnowiec Complex Plastic Systems, Rawicka Fabryka Wyposażenia Wagonów “Rawag", Signify Poland, Superior Industries Production Poland, Valeo Autosystemy, Velvet Care, Vestas-Poland, Volvo Polska, Wawrzaszek Iss.

UOKiK analysis

The selection of entrepreneurs who may be in default of their payments was preceded by an analysis that identified the areas with the highest risk of delays in payments and affects SME entities in particular. UOKiK took into account in its analysis, among other things, the information provided by the Head of the National Tax Administration and data from reports submitted to the Minister of Development and Technology on applicable payment terms in commercial transactions. The highest risks from payment gridlocks occurred in the widely understood industries: automotive, cosmetics, electrical machinery, as well as food processing and packaging. Payment gridlocks in trade and distribution are also still evident.

What are the fines for entrepreneurs?

The proceedings initiated this year are based on the December 2022 amended regulations on payment gridlocks. Under the new law, fines could be higher than before, thus more severe for large entities. In addition, President of UOKiK may take into account not only, as before December 2022, the value of overdue payments and the length of delays, but also mitigating and aggravating circumstances. For example, actions taken by an entity on its own initiative to stop the violation and cooperation with President of UOKiK may help reduce the fine.

Soft calls

In addition to the investigations initiated, President of UOKiK issued more than 150 soft calls to entrepreneurs in 2023 signaling perceived doubts about their reliability in settlements with suppliers. If they fail to improve their payment discipline, further actions will be taken, including the initiation of an investigation that may result in fines for entrepreneurs.

Visit the website on payment gridlocks

The most important information regarding the competencies of President of UOKiK in connection with payment gridlocks may be found on a dedicated website. What are payment gridlocks? When can President of UOKiK investigate them? How can I report a business partner who has failed to make a payment? Who may file such a report? These and many other questions and answers can be found at www.zatoryplatnicze.uokik.gov.pl