Communication
The aim of the protection of market competition is primarily to create benefits for consumers and equal conditions for all entrepreneurs on the market, who, acting in accordance with the existing rules and competing on the market with the quality, price and innovation of their products and services, contribute to the overall development of the economy.
Application of the UTPs Act
The Croatian Competition Agency (CCA) received 150 contracts concluded between 31 re-sellers and suppliers, both domestic and foreign. Using a sampling method, the CCA requested these contracts and it has been carrying out the analysis that indicated that some thirty contracts contained provisions that are unclear or contestable. On the basis of these findings it opened 20 administrative proceedings against particular re-sellers, buyers and/or processors.
The CCA notes that the mere opening of an infringement proceeding against a re-seller, buyer and/or a processor does not at all mean that the practices described in the initiative necessarily constitute unfair trading practices and thereby an infringement of UTPs provisions. Only after it has established all the relevant facts of the case and collected the concrete evidence of a possible infringement, it will take its decision on the merits of each particular case. Its final decision will be published in its entirety on this website.
It must be noted that from the beginning of the full application of the UTPs provisions the CCA has received no formal complaint or writing within the meaning of the General Administrative Procedure Act. There has been only one confidential complaint that was received by the Ministry of Agriculture and forwarded to the CCA.
In this sense, the CCA urges and encourages anybody who might have any knowledge of unfair trading practices to report such a behaviour to the CCA. This would make the CCA’s job faster and more effective.
At the same time, the CCA, together with the Ministry of Agriculture, is taking part in the drafting of formal position to the proposed Directive of the European Parliament and of the Council on unfair trading practices in business-to-business relationships in the food supply chain.
Finally, taking account of some media assertions, the CCA must stress that its jurisdiction does not involve issues such as food safety and food quality – the matters that fall under the scrutiny of the competent inspection authorities in line with separate rules.
It should be also stressed that the UTPs act is applied equally to domestic and foreign suppliers and the re-sellers are free to decide on the suppliers they want to deal with depending on the competitiveness of the suppliers and consumers’ preferences. In that sense the CCA holds the view that it would be beneficial for small suppliers to pool so as to have a better negotiating position in the relationship with re-sellers and buyers.