Business&Law » Entrepreneur, don’t collude!

I would like to devote this guest inscription to initiatives that the Office of Competition and Consumer Protection undertakes to effectively protect competition and constantly raise the legal awareness of professional market participants. Our experiences clearly indicate that undertakings’ knowledge of antimonopoly provisions still has not reached a sufficient level, which is proved also by subsequent infringements. However, it is not our objective to impose fines, but prevent any competition-restricting market practices. According to this principle, the year 2012 is ruled by the motto – Entrepreneur, don’t collude! (pl. Przedsiębiorco, nie zmawiaj się!). We intend to conduct educational activities and revise the Act on competition and consumer protection.

 

Are changes in law necessary?

 

A few weeks ago during the conference held by the Office at the University of Wrocław, we posed a question to entrepreneurs and lawyers whether changes to Polish atimonopoly law are really necessary. The binding act has been in force for nearly five years, which is quite a long time especially taking into account changes observed in the economy. We take the stance, these changes should be followed by relevant modifications in legal order. It is essential that provisions indicating borders for business activity must allow for the development of entities based on criteria stipulated therein. The competitive market structure gives grounds for putting these postulates into effect. In line with views of undertakings and being inspired by the European and worldwide experiences gained by competition protection authorities, last year we commenced our conceptual works on changes in Polish antimonopoly law. We intend to present the draft project to public opinion. I hope the concepts will be approached positively.

 

What changes do we propose?

 

The number of notifications for concentration filed to the Office is gradually increasing, which should facilitate their examination. Having in mind the above, we would like to introduce two-stage proceedings. We assume most transactions will be concluded at stage one. It refers to concentrations which do not require a thorough sector inquiry and raise no doubts concerning their impact on competition. More complex cases, however, would fall under stage two. This solution is to accelerate proceedings conducted by the Office and enhance the predictability of authority’s actions among entrepreneurs considering changes in their organizational structure.

 

As enhancing effectiveness of combating prohibited agreements is our priority, we are considering introducing changes in this field. We are planning among others to expand the leniency programme to the so called mode leniency plus – to be applied to undertakings who cannot expect a total immunity from fine due to the fact they failed to apply for the leniency as the first entity or were initiators of a collusion. For providing evidence regarding still undetected collusions these entities would obtain additional financial benefits. Following the foreign jurisprudence of authorities where this instrument has gained popularity, I deeply believe, this could enhance the effectiveness and detection of prohibited agreements on Polish market.

 

Education first priority – Entrepreneur, don’t collude!

 

Bearing in mind prohibited agreements are detrimental to competitors, business partners and consumers, we started the educational campaign addressed to entrepreneurs. Experts from UOKiK, law offices in a specially tailored series of films explain the following topics: why collusions threaten competition, what is prohibited and allowed by the law, what is the difference between price fixing and following their level, sanctions for participating in a collusion and possibility of obtaining immunity from fine.

 

Broadcasts are published every Wednesday at UOKiK’s website. The campaign is accompanied by press releases by Office experts and radio broadcasts. Furthermore, we are planning to send educational materials to entrepreneurs. I believe that our initiative will meet its objectives and contribute to increasing the legal awareness of professional market participants.

I am convinced the actions undertaken by UOKiK, both the educational campaign and changes to antimonopoly provisions, will result in even better perfomance of tasks by the Office and enhancing the transparency and predictability of our actions

Małgorzata Krasnodębska-Tomkiel

President of the Office of Competition and Consumer Protection