UOKiK: PLN 136 million in fines for market-sharing in the agricultural machinery sector

The President of the Office for Competition and Consumer Protection (UOKiK) has imposed fines totalling nearly PLN 136 million on nine companies operating in the agricultural machinery sector. Among them was, amongst others, the wholesale distributor AGCO sp. z o.o..

It was established that the companies had, for 11 years, between 2012 and 2023, divided the Polish market for Valtra, Fendt and Massey Ferguson agricultural machinery amongst themselves, setting exorbitant prices. As a result of these unfair practices between the businesses, farmers overpaid for the equipment they purchased for years. At present, the Office’s decision is not yet final, and the penalised entities may appeal against it in court.

UOKiK Fines AGCO and Agricultural Machinery Dealers PLN 136 Million

The decision by the President of UOKiK directly concerned a wholesale distributor of agricultural machinery (AGCO sp. z o.o.), 8 local agricultural machinery dealers cooperating with it, and 5 managers responsible for the operation of the agreement, imposing a total fine of nearly 136 million zlotys on the aforementioned entities.

Collusion among agricultural machinery dealers: market sharing, price gouging and refusal to sell

According to the UOKiK’s findings, the companies agreed amongst themselves on a rigid territorial division. A given dealer was permitted to sell machinery only within their assigned territory, and the businesses also exchanged pricing information.

As a result, if an enquiry for a quote came to them from another region of Poland, the seller would deliberately quote a price higher than that of the ‘locally designated’ dealer or refuse to provide a quote altogether. Consequently, farmers were unable to purchase equipment more cheaply than from their local distributor and thus overpaid for the machinery. Key evidence in the case was uncovered, amongst other things, on the basis of collected email correspondence.

How to Protect a Sales Network from Antitrust Risks and UOKiK Fines?

This decision constitutes an important point of reference for businesses organising sales through a distribution network. To minimise antitrust risks and ensure that the adopted commercial model is entirely secure, it is good practice to take preventative measures, such as:

• reviewing commercial procedures;
• verifying documentation;
• raising team awareness;
• implementing compliance measures;
• consulting on the current business model.

UOKiK fines for breaches of competition law: up to 10 per cent of turnover and PLN 2 million for managers

The sanctions imposed by UOKiK for participating in an agreement restricting competition are very severe. The Office has the right to impose a financial penalty of up to 10 per cent of a business’s annual turnover. Managers are also financially liable; those responsible for concluding or implementing the agreement face a penalty of up to 2 million zlotys.

Check whether your distribution network complies with competition law

Even standard rules for cooperation with dealers, distributors or trading partners can lead to serious antitrust risks. It is worth reviewing contracts, sales procedures and communication methods within the network well in advance.

Our team supports businesses in auditing distribution models, assessing risks and implementing effective compliance procedures. Contact us to minimise the risk of proceedings by the Office of Competition and Consumer Protection (UOKiK) and financial liability for the company and its managers.