The President of the Office of Competition and Consumer Protection (UOKiK) has fined (13 January) Empire Brands, a distributor of pet food, nearly 500,000 PLN for engaging in illegal price-fixing agreements with its business partners. The penalties include fines for the company itself and two managers directly involved in the anti-competitive practices.
An investigation revealed that Empire Brands imposed minimum resale prices for its products sold online by its partners, effectively eliminating price competition in the market. The company’s actions violated both Polish competition laws and EU regulations, as they had the potential to affect trade between EU member states.
“Empire Brands controlled the prices of pet food sold by its online partners to maintain artificially high prices across the market,” said Tomasz Chróstny, President of UOKiK. “These practices harmed consumers by denying them access to lower, competitive prices and undermined fair competition in the pet food sector.”
How the Scheme Worked
Empire Brands required its online retail partners to sell its products at prices no lower than those listed on Empire’s own online store. Partners who violated these pricing agreements were subjected to a range of punitive measures, including verbal warnings, altered payment terms, restricted access to promotional pricing, and, in some cases, termination of their contracts.
The company also responded to complaints from partners about price deviations by intervening to enforce compliance, further ensuring that no retailer could offer lower prices.
Penalties Imposed
Empire Brands was fined 352,821 PLN, while two of its managers, Rafał Śliwiński and Maciej Banduła, were personally fined 82,250 PLN and 39,000 PLN, respectively. Under Polish competition law, companies can face fines of up to 10% of their turnover, while managers can be fined up to 2 million PLN for their involvement in anti-competitive agreements.
Opportunities to Avoid Sanctions
UOKiK reminded businesses and individuals of the “leniency” program, which allows participants in illegal agreements to reduce or avoid penalties by cooperating with authorities and providing evidence of wrongdoing. Companies and managers seeking to use this program can contact UOKiK directly, with anonymity guaranteed.
Whistleblower Program
UOKiK also highlighted its anonymous whistleblower platform, which allows individuals to report anti-competitive practices securely. The platform, accessible via uokik.whiblo.pl, ensures complete confidentiality using advanced European-level encryption systems.
Source: https://uokik.gov.pl/karma-dla-zwierzat-drozsza-w-sieci-prezes-uokik-nalozyl-prawie-pol-miliona-kary
