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.
CCA fines retailer MLIN I PEKARE for imposing unfair trading practices
The Croatian Competition Agency (CCA) fined Mlin i pekare d.o.o. from Sisak EUR 1,500 for the 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 Mlin i pekare used its strong bargaining power and imposed unfair trading practices on its egg supplier.
The CCA opened ex officio infringement proceeding against the buyer/retailer of food and agri products Mlin i pekare 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 egg supplier.
Concretely, the investigation found that in the period from 28 February 2022 to 28 March 2022 (28 days) Mlin i pekare was engaged in business transactions with its egg supplier based on an agreement that failed to specify the price of the food product and that also failed to specify the quality and type of the food product concerned, which constituted an unfair trading practice under UTPs Act.
Considering the gravity, the scope and the duration of the infringement, the consequences for the suppliers, and a number of mitigating circumstances, particularly the fact that Mlin i pekare undertook to revise the agreements concerned in compliance with the UTPs Act before the adoption of the statement of objections by the CCA, the CCA decided to impose a fine in the amount of EUR 1,500.
The CCA finds that the fine would have a deterrent effect not only on Mlin i pekare but also on other actors in the food supply chain.