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.
ŽITAR d.o.o. did not act in contravention with UTPs rules – CCA terminates proceedings
The Croatian Competition Agency (CCA) has terminated the administrative proceeding that it opened ex officio on 11 November 2024 against ŽITAR d.o.o., concerning the assessment of whether the company, as a buyer of wheat, had used its significant bargaining power and imposed unfair trading practices on its suppliers, in breach of the Act on prohibition of unfair trading practices in the business-to-business food supply chain (UTPs Act).
The CCA opened the proceeding ex officio after, in the course of a broader compliance review of several buyers under the UTP Act—including ŽITAR d.o.o.—it identified indications that the company had been purchasing wheat from one supplier without a written contract, where such conduct could constitute an unfair trading practice under Article 4 par 2 item 1 of the UTPs Act.
Additionally, the initial indication suggested that ŽITAR d.o.o. may have been operating on the basis of publicly available and binding purchase conditions, without entering into written contracts, in circumstances where the conditions for an exemption under Article 6 par 1of the UTPs Act were not met. For this reason, and in order to safeguard the public interest, the CCA considered it necessary to verify the lawfulness of the company’s overall wheat procurement practices in 2023, including transactions with all suppliers from whom ŽITAR d.o.o. purchased wheat of the 2023 harvest without individual written contracts, i.e. on the basis of purchase conditions.
During the proceeding, the CCA established the relevant facts using all appropriate means of evidence. Following an individual and comprehensive assessment of each piece of evidence, carried out in accordance with the principle of free evaluation of evidence, the CCA concluded that the initial indications suggesting potential use of significant bargaining power were not confirmed.
As the investigation established that ŽITAR d.o.o., with respect to the suppliers concerned, did not act contrary to the provisions of the UTPs Act, the CCA terminated the proceeding because the legal conditions for its continuation were no longer fulfilled.
The CCA will continue to monitor the compliance of buyers and suppliers in the food supply chain with the UTPs Act, with the aim of preventing and sanctioning unfair trading practices and ensuring balanced and fair-trading relations among the market participants.