The Czech Competition Authority has fined electronics retailer and distributor HP Tronic Zlín CZK 38.97 million (€1.6 million) for imposing minimum resale prices on retailers over a period of more than 10 years.
The Office for the Protection of Competition (ÚOHS) said on May 6 that HP Tronic violated both Czech and EU competition rules by restricting retailers’ ability to set their own consumer prices for a wide range of electronics and household products.
HP Tronic operates the DATART and ETA retail brands in the Czech Republic, including brick-and-mortar stores and online shops.
According to the authority, the company had been dictating minimum resale prices to downstream retailers since 2012 for products including large and small household appliances, consumer electronics, computer equipment and telecommunications devices.
ÚOHS said HP Tronic monitored compliance with the pricing policy and contacted retailers that sold products below the prescribed levels, demanding price increases. The authority added that the company also imposed sanctions on retailers that failed to comply.
The company has appealed the decision, meaning the case will now be reviewed by the chairman of the authority.
The authority said it reduced the fine after HP Tronic admitted the conduct during the administrative proceedings and applied for leniency. The penalty was further lowered because the company strengthened its internal compliance program and agreed to settle the case.
ÚOHS noted that it has long focused on combating resale price maintenance practices, which it said artificially align retail prices and increase price levels for consumers. In recent years, the authority has imposed major fines in similar cases involving suppliers of electronics and pet food products, including Electrolux, VAFO, Groupe SEB and Tescoma.
