J. Sroczyński for WuW No. 9/2008 – New President of the Office of Competition and Consumer Protection

Vicepresident of the Office of Competition and Consumer Protection (“OCCP”), Dr. Małgorzata Krasnodębska-Tomkiel, was elevated to the position of President, replacing Mr. Marek Niechciał. Dr. Krasnodębska-Tomkiel has a long career path with the OCCP, in the past performing also the functions of deputy director and director of the Legal Department. Under Polish Antimonopoly Law, President of the OCCP is appointed and dismissed by the Prime Minister.

The OCCP initiated the explanatory proceedings concerning the allegations of infringement of collective consumer interests by the largest Polish commercial bank, Pekao, a subsidiary of the Italian UniCredito. The merger of Pekao and another Polish bank, BPH, was a consequence of the merger on the parent’s level, whereby UniCredito acquired the German bank HVB. The Polish part of the merger was subject to careful antimonopoly scrutiny in Poland, despite the decision power remaining exclusively with the EU Commission. Currently, the OCCP is reviewing numerous complaints of customers of both merged Polish banks, who allege being misinformed of the actual outcome of the merger and the detrimental changes in some banking services.

The Court of Competition and Consumer Protection upheld the decision of the President of the OCCP, prohibiting price-fixing practices in relations between the largest Polish producer of paints and coatings, the Sigma Kalon-owned Polifarb, and seven DIY (do-it-yourself) stores (Bricomarche, Castorama, Leroy Merlin, Nomi, Obi, Platforma and Praktiker). The anticompetitive practices consisted in the granting by Polifarb of special rebates to the DIY stores in exchange for maintaining the resale price at predetermined levels. The total fines imposed by the OCCP reached the peak of some 30 million Euro. The court decreased the fines imposed on Leroy Merlin and Platforma by approximately half of their respective amounts. Castorama, which applied for leniency, was left with rather minimal fine of some 15 thousand Euro.

J. Sroczyński, Wirtschaft und Wettbewerb. Developments in national competition law, No. 9/2008.