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.
UTPs Act: Provisions on „final sales price“ start to apply on 1 March 2023 – All other provisions apply as of today, 1 March 2022
Besides the necessary adjustments within the meaning the Commission Implementing Regulation (EU) 2021/1832 of 12 October 2021 amending Annex I to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff, OJ L 385, 29.10.2021, in effect as of 1 January 2022, on which Annex I is based, the revised Ordinance also postpones the entry into force of the provisions on food products and produce that is highly sensitive to production and market variability from 1 March 2022 to 1 March 2023.
Despite the fact that food products and produce that is highly sensitive to production and market viability are generally defined and grouped under the Act on the prohibition of unfair trading practices in the business-to-business food supply chain, OG 117/17 and 52/21 (UTPs Act), with the view to ensuring legal certainty, the Croatian Competition Agency (CCA) will apply the provisions relating to “final sales price” i.e., investigate the compliance of the agreements and business deals containing the “final sales price” and the following connected and prohibited unfair trading practices: the “sale of produce that is highly sensitive to production and market variability below the final sales price” (Article 11 paragraph 1 item 26 of the UTPs Act), the “sale of produce that is highly sensitive to production and market variability” in special offers under the sales price that cannot be lower than 34 % of the final sales price for the end user (Article 11 paragraph 1 item 27 of the UTPs Act), and the provision on mandatory payment of the difference between the excess of the delivered but not sold agri and food products that are highly sensitive to production and market variability (Article 12 paragraph 2 item 2 of the UTPs Act) as of 1 March 2023 when the list of food products and produce that is highly sensitive to production and market variability enters into force.
It must be noted that the provisions of the UTPs Act have been in force since 1 September 2021 whereas the buyers enjoyed a transitory period until 1 March 2022 for the revision of their contracts and business delas. Similarly, the buyers who had not fulfilled the criteria for the application of the former UTPs Act had to bring the contracts with their suppliers of food and/or agri products in compliance with Article 3 of the UTPs Act until 1 March 2022.
In conclusion: as of 1 March 2002, the CCA applies all the provisions of the UTPs Act, with the exception of the provisions relating to the “final sales price” and the relating unfair trading practices defined under Article 11 paragraph 1 items 26 and 27, and Article 12 paragraph 2 item 2 of the UTPs Act that are applicable as of 1 March 2023.