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.

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Unfair trading practices – CCA imposes HRK 65,000 fine on Ribola

The Croatian Competition Agency (CCA) opened ex officio infringement proceeding within the meaning of the Act on prohibition of unfair trading practices in the business-to-business food supply chain (UTPs Act) with the view to establishing whether the re-seller Ribola used its strong bargaining power and imposed unfair trading practices on its supplier in the contract and regarding the implementation of that contract with its supplier.

The CCA found that Ribola made the payments to its supplier outside the deadline prescribed by the UTPs Act. This unfair trading practice was imposed on the supplier in the period from 30 July 2018 to 27 September 2018 on the total of 188 invoices.

Taking into account the gravity, the scope and the duration and the consequences of the infringement concerned for the supplier, as well as the extenuating circumstances, Ribola was imposed a fine in the amount of HRK 65,000.

It is the view of the CCA that the fine is proportional to the gravity, scope and duration of the infringement and that it will have a deterrent effect not only on Ribola but also on other re-sellers, buyers and processors in the food supply chain.

Namely, Ribola violated one provision under the UTPs Act and the infringement concerned was committed shortly after the UTPs Act started to fully apply and it lasted for a short period of time, whereas the majority of invoices indicated that the payment deadline specified under the UTPs Act was exceeded for nine days at the most. On the other hand, the CCA also accepted the claims of Ribola that it had made the payments to the supplier concerned within the prescribed payment deadline after the CCA opened the infringement proceeding.

The integral text of the CCA non-confidential decision is available here