Communication
The aim of the protection of market competition is primarily to create benefits for consumers and equal conditions for all entrepreneurs on the market, who, acting in accordance with the existing rules and competing on the market with the quality, price and innovation of their products and services, contribute to the overall development of the economy.
EUR 132,000 fine for STUDENAC for imposing unfair trading practices
The Croatian Competition Agency (CCA) fined STUDENAC d.o.o. from Omiš EUR 132,000 for the serious infringement of the Croatian Act on the prohibition of unfair trading practices in the business-to-business food supply chain (UTPs Act). The investigation showed that STUDENAC used its strong bargaining power and imposed unfair trading practices on its suppliers.
The CCA opened ex officio infringement proceeding against the buyer STUDENAC within the meaning of the UTPs Act with the view to establishing whether it used its strong bargaining power and imposed unfair trading practices on its suppliers of agri- and food products.
The investigation showed that by using its strong bargaining power, STUDENAC imposed unfair trading practices on its suppliers by:
(i) closing its business deals based on a written contract that failed to comply with the provisions of the UTPSs Act in terms of product pricing, in other words, the prices of products were not agreed upon in writing prior to delivery;
(ii) imposing extra charges for the publication in STUDENAC ad flyer with no prior agreement on the price for the marketing services and respective discounts, in other words, the price was not previously agreed with the supplier and invoiced in a clear and unambiguous written form. Under the UTPs Act any fees for the buyer’s services to the supplier, the realization of which depends on the real and measurable performance of the buyer, the buyer must issue an invoice to the supplier on to which it is obliged to clearly specify each individual service for it has been charged;
(iii) illegally returning agricultural and food products due to poor turnover, based on an exception that had not been previously agreed upon in a clear and unambiguous manner;
(iv) making payments exceeding the 30-day deadline for perishable agricultural and food products, or the 60-day deadline for non-perishable agricultural and food products.
Considering the gravity, the scope and the duration of the infringement, the consequences for the suppliers, and a number of mitigating circumstances, the CCA imposed a fine in the amount of EUR 132,000. The CCA believes that the fine would have a deterrent effect not only on STUDENAC but also on other actors in the food supply chain.
The full text of the decision, excluding business secrets, will be published later on the CCA website.