Poland - UOKIK's Activity in 2012
859 decisions regarding the protection of competition and consumers, as well as product safety, and fines totalling over PLN 165 mln – these are the effects of operations of the Office of Competition and Consumer Protection in 2012.
Antimonopoly proceedings are the key tool of the President of the Office as regards the protection of competition. They may result in, inter alia, issuing an order to discontinue the challenged practice or imposing fines. In 2012, the President of UOKiK conducted 469 explanatory proceedings and 147 antimonopoly proceedings, 106 of them were related to the abuse of a dominant market position by undertakings and 41 to prohibited arrangements.
Last year, the President of the Office issued 86 decisions concerning competition-restricting practices, 67 of which were related to the abuse of a dominant position and 19 to prohibited arrangements. One of them was the detection of the collusion of a manufacturer of lubricants and the distributors cooperating with them. As it was found, since 2003, Orlen Oil had obliged their business partners to market the Platinum line lubricants (including motor oils) at minimum prices. Distributors were not allowed to offer those products below the rates indicated by the manufacturer, reduced by a discount. Orlen Oil was fined with nearly PLN 2 mln.
2012 was the record year in terms of the number of submitted applications under the leniency programme. 16 applications were received from undertakings, while in the years 2004-2011, i.e. in the previous years of the programme’s operation, there were 30 in total.
Furthermore, the President of UOKiK has the right to control concentration in order to prevent a situation when as a result of a transaction a dominant entity emerges on the market. Last year, the office conducted 194 cases regarding mergers and acquisitions. All 137 decisions ended in issuing consents to implement transactions, including one case of conditional consent to an acquisition. The highest number of cases was related to IT, Internet and TV services (19) and property, construction and development services (15).
State aid monitoring is strictly connected with the protection of competition. The President of UOKiK issues opinions on state aid granted to undertakings as part of the aid schemes and individual decisions before they are sent to the European Union, which makes decisions on the compliance of the aid with EU regulations. In 2012, the President of the Office received 509 requests for interpretations and 396 draft government documents to review in respect of the potential application of state aid. 41 projects were notified to the European Commission, including 31 related to individual aid, 2 – individual aid for restructuring, and 8 – aid schemes.
Last year, UOKiK conducted 450 proceedings on practices violating collective consumer interests. As a result, the President of the Office issued 324 decisions. In 85 decisions, it was ordered to discontinue the prohibited practices, and in 108 cases that the prohibited practice had been ceased. Moreover, 131 commitment decisions were issued, obliging undertakings to change their practice.
In the case of many types of services, a consumer cannot negotiate the wording of an agreement – their role comes down to accepting or declining it. Therefore, there is a threat of provisions being imposed that are not always advantageous. In 2012, the Office of Competition and Consumer Protection continued the inspections of standard forms of agreements used by businesses, with 6 reports published. Inspections were held in relation to the preparations to the European Football Championships. The Office analysed standard forms and regulations applied by airlines, railway companies and car rental businesses in Poland.
Also, in 2012, the Office filed 47 suits with a court to regard the clauses as prohibited.
Proceedings related to general product safety also serve the goal of consumer protection. As a result, the President of UOKiK may order e.g. withdrawal from the market of products hazardous for users and impose fines of up to PLN 100 thousand. Last year, the Office conducted 350 cases related to general product safety, with 136 decisions issued. Additionally, the Office received 93 voluntary notifications from undertakings, advising of their products failing to meet the safety requirements. The highest number of them (68) was in the automotive industry, and the remaining ones were related to electric equipment and engines for recreational boats.
The inspection of safety of products introduced to the market also takes place as part of proceedings related to the conformity assessment system. The proceedings cover over 20 groups of products, e.g. electric cars or toys with the CE mark, that must meet the requirements specified in Polish regulations under the European Union law. The Office conducts proceedings in cooperation with specialised institutions such as maritime offices or construction supervision offices. As a result, the President of UOKiK may order e.g. withdrawal from the market of hazardous products. Last year, UOKiK conducted 426 cases related to the conformity assessment system. The President of UOKiK issued 312 decisions, in 39 cases the businesses were imposed specific obligations.
UOKiK is also responsible for managing the surveillance system for fuel quality. Inspections carried out in 2012 showed the quality of liquid fuels deteriorated compared to the previous year. The tests showed 4.14 % out of 483 fuel samples controlled failed to meet the quality requirements. However, the quality of LPG fuel has improved – there were only 1.11 % irregularities identified in 450 samples taken.
Legislative work was an important aspect of UOKiK’s activities in 2012. The Office examined over 2.1 thousand draft acts and opinions concerning Seym drafts in respect of their impact on competition and consumers. In 2012, works were conducted, among others, on draft assumptions and amendments to the Act on competition and consumer protection. The changes are aimed at a more efficient detection of competition-restricting practices.