Poland - You have a choice - that's been our mission for 24 years
On 24th February 1990 was established the Antimonopoly Authority – the present Office of Competition and Consumer Protection. UOKiK issued over 4.6 thousand decisions only within the last six years. These efforts have been appreciated worldwide – the Office was nominated for the best European competition authority award in 2013.
Many publications on the political transformation in Poland present the so-called Balcerowicz Plan (also referred to as ‘shock therapy’) as a package of 10 acts adopted in December, 1989. Actually, there were 11 legal acts, one of which was not approved; it was passed for further works – this fact is not widely discussed though. It was the Act on counteracting monopolist practices, which finally entered into force on 24th February 1990 and gave grounds for establishing the Antimonopoly Authority, six years later transformed into the Office of Competition and Consumer Protection. The newly founded body was responsible for exerting control over transformations of state-owned enterprises, concentrations as well as fighting anticompetitive agreements and abuse of a dominant position. Its remit was gradually expanding within the next years, and in 1996, along with the new name given to the Office, its duties covered the protection of consumers. At present UOKiK is responsible also for state aid monitoring, petrol quality control and surveillance of general product safety.
Only between 2008-2014, the Office of Competition and Consumer Protection issued 4617 decisions concerning anticompetitive agreements, abuse of a dominant position, merger control, violating collective consumer interests, general product safety and essential requirements for products.
Competition-restricting practices
Within the last six years, the Office issued 565 decisions regarding prohibited agreements of undertakings and the abuse of a dominant position. There are 400 pending cases. – One of greatest achievements of the Office within the last few years was breaking the long-lasting cartel of cement producers. For 11 years, or longer, seven entrepreneurs had been fixing prices and dividing the cement market. The court finally confirmed that these practices were breaching the law – comments Małgorzata Krasnodębska-Tomkiel, acting President of UOKiK.
Merger and acquisition control
Concentration control is an important aspect of the Office’s operations. It is aimed at prohibiting these transactions which could result in the restriction of competition. In the years 2008-2014, there were 898 issued decisions, including five cases when UOKiK prohibited to implement a concentration; a conditional consent was issued in 13 cases. Decision prohibiting a concentration by Polska Grupa Energetyczna (PGE) and Energa is definitely worth noting. Taking control by PGE, enjoying a strong market position, would result in creating an entity which would impose trading conditions and fix energy prices, regardless of its competitors and contractors. In the decision, UOKiK pointed out that all recipients, including consumers, would pay for that. The decision is final, and in May, 2012, it was upheld by the Court of Competition and Consumer Protection (pl. SOKiK).
Consumer protection
Within the last six years, UOKiK acted also to protect weak market participants – the Office issued over 1800 decisions concerning the violation of collective consumer interests. Moreover, UOKiK drew up 24 reports on control of standard forms applied by undertakings in many trades. The latest one regarded developers and provides information on how the rights of persons buying flats on housing primary market are respected.
Legislative changes
Since 2008, the Office has issued 14.4 thousand opinions of legal acts, examining their impact on competition and position of consumers. Furthermore, it has initiated numerous legislative changes. The most important draft act made by the Office is the amendment to the Act on competition and consumer protection, currently being examined by the Parliament. – The necessity to make amendments resulted from long-lasting monitoring of Polish market and experiences gained by other states. They are aimed at more efficient fighting cartels, which are harmful for the economy, among others by facilitating the leniency programme, or introducing the settlement institution. Another challenge is more effective handling cases concerning merger control – says Małgorzata Krasnodębska-Tomkiel, acting President of UOKiK.
International initiatives
UOKiK was active on international forum in the years 2008-2013, with an emphasis on the exchange of experiences with other states and working out more effective ways of protecting competition. Last year the Polish Antimonopoly Authority hosted the conference within the International Competition Network, held in April 2013 in Warsaw. The invitation of Bronisław Komorowski, President of the Republic of Poland and Małgorzata Krasnodębska-Tomkiel, President of UOKiK, was accepted by heads and experts of antimonopoly offices worldwide who discussed the key challenges of competition protecting authorities.
UOKiK nominated
Competition protection conducted by the Office on the Polish market was appreciated by the international magazine Global Competition Review. It is a special information service devoted to competition law, also a host of annual contest for e.g. the best case of a year concerning the protection of competition and merger control, antimonopoly authority of a year on given continents. The Office of Competition and Consumer Protection has been nominated for the first time. It is competing with DG Competition, European Commission and Authorities from Germany, France and Norway to be recognized as the best European antimonopoly authority of 2013. Voting on GCR website is available till 3rd March.
Read the press release in Polish.