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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Implementation of the UTPs Act: CCA accepts commitments and terminates proceeding against KOKA

The Croatian Competition Agency (CCA) accepted the commitments proposed by KOKA d.d. from Varaždin and terminated the infringement proceeding that had been opened ex officio 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 identifying whether KOKA had used its strong bargaining power and imposed unfair trading practices on its suppliers of chickens (broilers) in the business transactions concerned. After the CCA notified KOKA about the opening of the infringement proceeding, KOKA proposed its commitments to remedy the concerns within the meaning of Article 18 paragraph 1 of the UTPs Act. To eliminate the concerns raised by the CCA, KOKA has undertaken to adopt a separate ordinance regulating the terms and conditions of issuing debentures to broiler producers and optional conclusion of annexes to broiler production agreements. KOKA also committed itself to issue debentures to all suppliers that would secure the payment of debts to suppliers for delivered but unpaid merchandise. The CCA accepted the proposed commitments finding the measures and respective deadlines legitimate and appropriate with the view to eliminating the circumstantial evidence that served as a base for the initiation of the infringement proceeding in the fist place and terminated the proceeding against the re-seller concerned. KOKA complied with the undertaken commitments in the prescribed time period.