Antitrust & competition law

100 days of Act on counteracting contractual advantage

The introduction of new law on combating contractual advantage was intended to eliminate application of unfair practices between entrepreneurs and traders in agricultural and food industries. Currently, Polish Authority of Competition and Consumers Protection (UOKiK) conducts 12 proceedings initiated under the provisions of new law.

Preliminary proceedings

It should be noted that at this stage all proceedings are conducted with regard to particular case, not against specified entrepreneur or trader. Proceedings, which were initiated are related especially to recent increase of butter price increase, apple purchase and supply of the milk as well as sugar beets supplies. In most cases UOKiK started investigations on its own initiative, but the case of sugar beets supplies was initiated after notification form individual farmer.

Penalties

Under the provisions of new act on counteracting contractual advantage, the maximum amount of penalty imposed on entity, which breached the law is amounted to 3{e1a10198ea0642a831f069ae58b4ef421c118aed50a41558a8156b14a84f0489} of the entrepreneur’s turnover reached in the year preceding the year in which breach was detected. The UOKiK may waive the penalty if the entrepreneur voluntarily undertakes to cease the unfair practices or indemnify the damage.

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Author team leader DKP Legal Michał Dudkowiak
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