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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Unfair trading practices – CCA imposes HRK 100,000 fine on Koka, Varaždin

The Croatian Competition Agency (CCA) opened ex officio infringement proceeding 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 used its strong bargaining power and imposed unfair trading practices on its suppliers of chickens (broilers) in the business transactions concerned.

The CCA found that Koka made the payments to its suppliers – broiler breeders outside the deadline prescribed by the UTPs Act, concretely, the payment exceeded the statutory 60 days. This unfair trading practice was imposed on seven suppliers of broilers in the period from 13 June 2018 to 18 April 2019 involving the total of 34 invoices issued by the suppliers concerned.

Taking into account the gravity, the scope and the duration and the consequences of the infringement concerned for the suppliers, as well as the extenuating circumstances, Koka was imposed a fine in the amount of HRK 100,000 and ordered to refrain from unfair practices in future.

It is the view of the CCA that the fine is proportional to the gravity, scope and duration of the infringement and that it will have a deterrent effect not only on Koka but also on other addressees of the UTPs Act.

Koka paid the full amount of the fine and notified the CCA thereof.