Fine for a distributor of Candy pet food confirmed
CANDY is a distributor of pet food for dogs and cats from following commercial brands NUTRAM, K-9, FELINE and CANDIE´S. Pet food was distributed by on-line direct sales to end consumers, through retailers and by wholesale dealers – its registered distributors.
CANDY breached the Act on the Protection of Competition by concluding prohibited agreements on resale price maintenance (minimum level of prices was set) with its distributors and online sellers in the period of January 2010 – September 2012.
During the investigated period CANDY issued terms and conditions that obliged distributors and online sellers to resale price maintenance. As distributors accepted terms and conditions such conduct was assessed by the Office as prohibited agreements with the object to infringe fair competition in the relevant markets. Also CANDY concluded prohibited price agreements through e-mail communication with operators of e-shops that also accepted the resale price maintenance request.
According to the Office´s findings, CANDY was active in ensuring the compliance of distributors and online sellers conduct with the set price agreements by regular monitoring of price levels of pet food. CANDY also applied pressure on its purchasers that were not willing to fulfil the price agreement. The Conduct of CANDY had a negative impact on competition and on end consumers as during the investigated period the price level of pet food was increased (in several cases more than 20 % increase) and the number of e-shops selling CNADY´s products decreased.
CANDY has been prohibited to continue in mentioned conduct and remedies related to the anticompetitive conduct have been imposed.
International and External Relations
13/108/HS036
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