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.
CCA fines Fermopromet HRK 60,000 for imposing unfair trading practices
The Croatian Competition Agency (CCA) fined Fermopromet d.o.o. from Majške Međe HRK 60,000 for the infringement of the Croatian Act on the prohibition of unfair trading practices in the business-to-business food supply chain (UTPs Act). The investigation showed that Fermopromet used its strong bargaining power and imposed unfair trading practices on its grains and oilseeds suppliers.
The CCA opened ex officio infringement proceeding against the company Fermopromet within the meaning of the UTPs Act with the view to establishing whether this buyer of grains and oilseeds used its strong bargaining power and imposed unfair trading practices on its suppliers.
The investigation found that regarding 20 invoices in the harvest season of 2018 Fermopromet made payments to its suppliers of grains and oilseeds outside the mandatory payment deadline under the UTPs Act, i.e., later than 60 days from the receipt of the invoice of the supplier of the agri or food product.
Considering the gravity, the scope and the duration of the infringement, the consequences for the suppliers, and a number of mitigating circumstances, the CCA decided to impose a fine in the amount of HRK 60,000.
The CCA finds that the fine would have a deterrent effect not only on Fermopromet but also on other actors in the food supply chain.