CCA accepts commitments by Flora VTC

The Croatian Competition Agency (CCA) accepted the commitments offered by Flora VTC in the course of the ex-officio proceeding that it opened against this undertaking in April 2016.

The CCA established within the proceeding that on the basis of the Prices for Funeral Services adopted on 23 October 2015 Flora VTC has tied the price of the burial service (that is discharged as a public service) to the sales of its own funeral supplies and mortuary equipment (that it carries out as a commercial service) thereby limiting the access to the market concerned for the competing undertakings.

Soon after the initiation of the proceeding Flora VTC offered the disapplication of the part of the Prices for Funeral Services giving 10% discount on the burial service if a client also bought funeral supplies from the undertaking concerned. Flora VTC offered also to make this decision public on its website, thus restoring the situation before the challenged 10 % discount entered into force.

The CCA assessed that it is appropriate to accept commitments offered by the party under investigation. It found that the nature of the commitments and their ability to quickly and effectively solve the competition concerns are sufficient to address the identified competition concerns and eliminate possible anticompetitive effects in the relevant market in the sales of funeral supplies and mortuary equipment in the territory of the town of Virovitica. Such a decision also takes into consideration the interests of the economic operators who can continue to perform the same activities in the market, whereas it enables the users of these services to freely choose the undertaking that will provide them with funeral supplies and mortuary equipment.

The commitments accepted are binding on the undertaking and the CCA will carry out the monitoring of the proper implementation of its decision. Should Flora VTC not comply with the undertaken commitments, the CCA shall decide to re-open the infringement proceeding and impose the appropriate sanctions.