CCA closes the proceeding against Hrana Tec following committments

The Croatian Competition Agency (CCA) closed the infringement proceeding against the undertaking Hrana Tec d.o.o. by accepting the commitments proposed voluntarily by the undertaking concerned. Concretely, Hrana Tec committed itself to provide its repair and maintenance services to all its customers under equal terms regardless of the value of the purchase of Poly-clip System clipping machines. Hrana Tec will submit the revised price lists to the CCA serving as evidence of the implemented measures within two months after the receipt of the CCA’s decision.

In June 2018, based on the initiative made by the undertaking PIK Vrbovec Mesna Industrija d.d., the CCA started ex-officio proceeding to investigate whether the undertaking Hrana Tec d.o.o. abused a dominant position in the sales of spare parts and provision of repair and maintenance services for Poly-clip System clipping machines in the territory of the Republic of Croatia.

The complainant had claimed that in September 2017 it ordered and paid for an original spare part for the clipping machine but the authorised repairer Hrana Tec refused to install the part concerned as soon as it noticed that the clipping machine concerned already contained consumables that had been purchased from a distributor different from Hrana Tec.

At the same time, Hrana Tec allegedly warned PIK Vrbovec that if it continued to purchase productive material from any other manufacturer and to install it in Poly-clip System clipping machines, Hrana Tec would refuse to supply it with spare parts and consumables and provide repair services.

In addition, the complainant was concerned about the free-of-charge servicing or charging only a flat rate by Hrana Tec to all its customers that buy consumables exceeding a certain value of purchase. This could have resulted in a spill-over of its significant market power to another market.

In the course of the investigation the CCA found that it was only once that Hrana Tec refused to install a display for the undertaking PIK Vrbovec. Apart from this one isolated case, it has been established in the course of the proceeding that no competing undertaking of the undertaking PIK Vrbovec had any difficulties in the deals with Hrana Tec.

At the early phase of the proceeding Hrana Tec proposed commitments that quickly eliminate possible anticompetitive effects in the provision of repair and maintenance services and thereby restore effective competition in the relevant market concerned. In addition, in the market tests that had been carried out in this matter the CCA did not receive any comments.

 

Taking everything into account, the CCA accepted the commitments to redress the effective competition and terminated the proceeding against the undertaking concerned without bringing an infringement decision.