J. Sroczyński for WuW No. 9/2000 – An analysis of the draft of the new competition law

A bill of the new antimonopoly law has been presented to the Polish Parliament by the Office of Competition and Consumer Protection (the “OCCP”). This legislative initiative constitutes a part the process of further harmonization of Polish competition laws with those of the European Union. The bill carries a vast number of important changes, as compared to the current statute. The most notable difference is probably an introduction of group exemptions in the case of certain types of agreements. Arrangements between competing undertakings which do not hold together more than 5% market share, and 10% market share in the case of vertical agreements, are planned to be exempted by operation of law. On the other hand, the rule of reason will not be anymore applicable to an abuse of a dominant market position. Market dominance is still to be presumed as of 40% market share, except the mass media market, where a 20% market share will already constitute a presumption of the dominant market position.

Another novelty is a merger notification requirement imposed on natural persons, except the first merger-type transaction, which will not need to be notified. The notification turnover thresholds are planned to be increased from the current EURO 25 million to EURO 50 million. Hovever, a notification will be necessary only if the target’s turnover in Poland war greater than EURO 10 million in each of the last two proceding years. Groups of companies are to be expressly treated as one entity in an economical sense.

A significant number of changes will also affect the antimonopoly procedures. The OCCP will obtain much more legal power to organize “dawn raids”. Two types of procedures are planned to introduced, a preliminary procedure instituted only ex officio, and a regular antimonopoly law.

In addition to the foregoing planned changes of the antimonopoly regulations, the OCCP has already obtained new tasks and legal powers pursuant to two legislative acts connected with consumer protection, namely the Polish language act and the act regulating abusive clauses in contracts concluded with consumers.

J. Sroczyński, Wirtschaft und Wettbewerb. Developments in national competition law, No. 9/2000.