In line with the Act on the prohibition of unfair trading practices in the business-to-business food supply chain (UTPs Act) the Croatian Competition Agency (CCA) opened an administrative proceeding against the buyer of watermelons – AGRO GOLD d.o.o. regarding the use of its strong bargaining power in the sense of imposition of unfair trading practices in the purchase of watermelons.
In the course of the proceeding the CCA found that the watermelon buyer used its strong bargaining power and, in the watermelon season of 2018, imposed on its watermelon suppliers a number of unfair trading practices within the meaning of the UTPs Act.
Taking into account the gravity, the scope and the duration of the infringement concerned and the consequences for the suppliers, AGRO GOLD was imposed a fine in the amount of HRK 75,000.
It is the view of the CCA that the fine is proportional to the infringement and that it will have a deterrent effect not only on AGRO GOLD but also on other re-sellers, buyers and/or processors in the food supply chain.
The CCA prohibited AGRO GOLD any further behaviour that constituted unfair trading practices under its decision and ordered it to provide evidence that its business deals have been brought into compliance with the provisions of the UTP’s Act.
The integral decision of the CCA in this case in the Croatian language is available here