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.
High Administrative Court rejects the claims of Massive Panels against the CCA decision in the case: CCA v Croatian forestry and woodland management company – Hrvatske šume
In its ruling of 10 January 2024, the High Administrative Court of the Republic of Croatia (VUSRH) rejected the statement of claim of the undertaking Massive Panels d.o.o. and upheld the decision of the Croatian Competition Agency (CCA) of 20 July 2023, making the decision of the CCA legally valid. In its ruling, the VUSRH confirmed that the CCA properly applied factual and legal elements that were relevant for accepting the commitments offered by Hrvatske šume.
Namely, following a complaint of the undertaking Massive Panels on 7 October 2021 the CCA opened an infringement proceeding against Hrvatske šume and the Croatian Chamber of the Economy – Wood Processing Association with the view to identifying whether they had been involved in anticompetitive behaviour in the distribution of timber assortments.
On 20 July 2023 the Croatian Competition Agency (CCA) closed the infringement case with respect to the conclusion of a prohibited agreement against the Croatian forestry and woodland management company – Hrvatske šume and the Croatian Chamber of the Economy – Wood Processing Association by accepting the commitments offered by Hrvatske šume.
Concretely, Hrvatske šume undertook the commitments to apply equal, clear and transparent conditions to equivalent transactions to its buyers – undertakings that are its competitors in allocation of timber assortments quotas in public calls for the conclusion of framework and annual agreements. The compliance with these criteria would be under scrutiny of the management office in line with the Competition Compliance Program.
In addition, Hrvatske šume undertook to conduct a public consultation with the interested public on the central state portal for consultations with the interested public, e-Savjetovanje, on the Draft Decision on the forms and conditions for the sale of timber assortments of Hrvatske šume for each coming year.
Hrvatske šume has also committed itself to adopt the Competition Compliance Program within three (3) months and communicate it to the CCA.
Given the fact that Hrvatske šume implemented the said remedies there has been no legal standing to act against the undertaking in question.