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.
Proceeding and interim measure for undertaker Flora VTC
Within the proceeding against the undertaker Flora VTC from Virovitica the CCA will establish whether the undertaking in question has been engaged in abusive behaviour on the basis of the applicable Prices for Funeral Services in the Town of Virovitica taking into account its dominant position in the provision of burial services on cemeteries in the territory of the town of Virovitica that may result in distortion of competition in the funeral supplies and mortuary equipment market.
Concretely, on the basis of the Prices for Funeral Services adopted on 23 October 2015 Flora VTC has tied the price of the burial service (as a public service) to the sales of its own funeral supplies and mortuary equipment (as a commercial service) thereby limiting the access to the market concerned for the competing undertakings.
This behaviour leads to market foreclosure and involves exclusionary practices and it has also a negative effect on the consumers relating to the choice of products, price and quality. In other words, such a practice may create a belief that other undertakings in the funeral supplies and mortuary equipment market are less competitive than Flora VTC.
This is why the CCA adopted also an interim measure ordering Flora VTC the disapplication of the part of the Prices for Funeral Services giving 10% discount on the burial service if a client also buys funeral supplies from the undertaking concerned. In addition, Flora VTC was ordered to stop advertising the discount concerned in any form and to remove such content from all the existing sings, posters, fliers, business cards i.e. any form of sales promotion. The interim measure is imposed for the period of six months.