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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CCA investigated seed corn market in Croatia

Within its scope of jurisdiction, the Croatian Competition Agency conducted a seed corn market investigation, based on the information on the existence of a possible price fixing agreement in the seed corn sales in the area of Koprivnica-Križevci and Bjelovar-Bilogora County, with a special emphasis on seed corn FAO490, Pajdaš brand. Concretely, the CCA requested a number of undertakings engaged in the production, purchase and/or sale of seed corn to supply relevant information on the subject.

In the course of the analysis of the received information the CCA found no circumstantial evidence that would substantiate the allegations on the existence of a price fixing agreement between the distributors and producers.

Taking into account the Pajdaš FAO490 seed corn market, from the submitted replies and data, the CCA found that the only producer of the said seed corn of this brand sells the said product at the same price to all undertakings, gives rebates, i.e. the price is reduced by the rebates agreed with each customer individually, depending on the purchased quantities, in accordance with the wholesale price list of the manufacturer of the mentioned seed corn. The undertakings then calculate the wholesale price by adding their rebate to the price concerned, which was lower than the rebate given by the supplier, and which represented their profit. Furthermore, they formed the retail price by giving a certain rebate and adding their own margin, therefore, the specified retail prices differ from undertaking to undertaking, that is, it is clear that retail prices are freely defined.

Within the investigation concerned, the CCA also analysed the agreements entered into by the producers and undertakings engaged in the production, purchase and/or sales of seed corn, and its annexes. In the sense of competition rules the CCA found no provisions that would contravene with competition rules. Thus, it concluded that there had been no circumstantial evidence that would indicate distortion of competition in the relevant market concerned.