J. Sroczyński for WuW No. 9/2002 – Proceedings against Telekomunikacja Polska S.A.

The Supreme Court has ruled that a prosectorium lease agreement, concluded between a local hospital and an undertaker, should be regarded as null and void, being contrary to the rules of competition and the decorum principles. The Supreme Court held that the undertaker, using the lease agreement as a tool to direct the flow of funeral services to his own firm, was able to monopolize the local market and foreclose access to those services by other undertakers.

The Antimonopoly Court annulled the decision of the President of the Office of Competition and Consumer Protection (“OCCP”), issued against Telekomunikacja Polska S.A. (“TPSA”), the national telecom operator. Pursuant to that decision, a fine was imposed on TPSA in the amount of approximately USD 16 million, the highest ever imposed by the OCCP. The fine was related to TPSA’s uncompetitive lack of balance between prices charged for inter-zone connections, local connections, and monthly fixed fees. The decision of the OCCP was overruled due to procedural reasons, mainly the absence of necessary evidence material.

Era and Plus, two mobile telephony operators, accused TPSA of leveraging its market power enjoyed on the market of ground telephony, where TPSA is a dominant player, onto the mobile telephony market. The allegations are directed towards a new offer for business clients, presented jointly by TPSA and Centertel, a TPSA-controlled another mobile operator. According to Era and Plus, the joint offer contains several rebates and subsidized promotions for clients, many of whom now contemplate to switch from Era and Plus to Centertel.

The Council of Ministers has issued a regulation which introduces a new form, applicable for notification of concentrations under the Antimonopoly Law. The new form, effective as of April 12, 2002, closely follows its European Union equivalent, i.e. the CO form used by the Commission.

J. Sroczyński, Wirtschaft und Wettbewerb. Developments in national competition law, No. 9/2002.