J. Sroczyński for WuW No. 6/2010 – The President of the Office of Competition and Consumer Protection hits the cement cartel

The President of the Office of Competition and Consumer Protection (“OCCP”) prohibited collusive practices on the Polish cement market, taking place for the last eleven years between all main producers. The collusion involved customer and market sharing, and the participants were also fixing prices and exchanging sensitive information. The amount of the imposed fines was the highest in twenty-year history of the OCCP, totaling to over 410 million zlotys, which equals to more than 100 million Euro. The highest fines were imposed on five cartelists, in the maximum possible statutory amount of 10% turnover. Two participants benefitted from the leniency program. One producer (Lafarge) obtained the full fine immunity, while the other (Gorazdze Cement) was fined in the amount of 5% turnover. The proceedings in this complex case took three years to complete and involved dawn raids in most companies. The cement industry trade association was also raided but was finally found not guilty of the antitrust violations and thus not fined.

The President of the OCCP, liaising with the European Commission, examined the merger between the US Kraft Foods and the British Cadbury, notified to the Commission under the Merger Regulation. In result of a research of the Polish market for chocolate products, the President of the OCCP expressed her view that the planned transaction will negatively affect competition on that market and suggested that Cadbury divests its Polish chocolate business. This suggestion was accepted by the Commission which issued a conditional approving decision to Kraft Foods, imposing a condition pursuant to which Cadbury must divest its Polish brand Wedel.

J. Sroczyński, Wirtschaft und Wettbewerb. Developments in national competition law, No. 6/2010.