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 Setovia voće HRK 120,000 for imposing unfair trading practices in purchase of watermelons
The Croatian Competition Agency (CCA) fined Setovia voće d.o.o HRK 120,000 for serious infringements 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 Setovia voće used its strong bargaining power and imposed unfair practices on four suppliers of watermelons.
The CCA opened ex officio infringement proceeding against Setovia voće within the meaning of the UTPs Act with the view to establishing whether this buyer of watermelons used its strong bargaining power and imposed unfair trading practices on its suppliers.
The investigation found that in the period from 1 April 2018 to 10 December 2021 Setovia voće concluded sales and purchase agreements (SPAs) that did not contain provisions on delivery deadlines with four of its suppliers. In addition, the SPAs with two suppliers did not specify the quality and the type of the agreed products. With respect to two suppliers, the buyer concerned made payments that exceeded the period of 30 days set by the UTPs Act for the fresh agricultural products while the SPA with one supplier did not specify the place of delivery.
Despite the fact that the individual infringements mentioned above did not cover the same period, the CCA found these were all serious infringements under the UTPs Act for which up to HRK 3.500,000 fine can be imposed.
Considering the gravity, the scope and the duration of the infringement, the consequences for the suppliers, and a number of mitigating and aggravating circumstances, the CCA imposed a fine in the amount of HRK 120,000.
The CCA finds that the fine would have a deterrent effect not only on Setovia voće but also on other actors in the food supply chain.
The CCA also prohibited Setovia voće any further practices identified by its decision.