Sewing machines supplier STRIMA agreed with a settlement procedure and was thus imposed a lower fine for vertical agreements
According to the Office, STRIMA, a supplier of sewing machines (e.g. Janome, Texi, Husqvarna Viking, Pfaff, Singer), in 2016 – 2020 set minimum or fixed retail prices for its customers, the retailers, at which they would sell the goods to end consumers. Compliance with these prices was monitored by STRIMA, and if a customer failed to comply, it was required to increase prices to at least the set level or otherwise threatened with sanctions. The prohibited resale price fixing agreements resulted in the raising price level for end consumers by restricting price competition between individual retailers.
Competition was distorted in the markets for household sewing machines and accessories in the Czech Republic and Slovakia. By the objected conduct, STRIMA infringed not only the prohibition set out in the Czech Competition Act but also the prohibition set out in the competition rules of the European Union.
When imposing the fine, the Office considered, as a mitigating factor, that the undertaking STRIMA voluntarily ceased the anticompetitive conduct, informed all its customers that the agreements in question were invalid and that the setting of the retail price is entirely at the discretion of the customers. The undertaking admitted to the anticompetitive conduct in the settlement procedure, for which the fine was reduced as indicated above.
Press Unit of the Office for the Protection of Competition
2023-11-23 / Economic Experts Shared Their Knowledge with the Employees of the Office for the Protection of Competition Last week, the Office for the Protection of Competition (hereinafter referred to as "the Office") organised a lecture on competition economics within the framework of improving the qualification and...
2023-11-20 / BEKO Fined 13 Million for Obstructing the On-Site Inspection The Office for the Protection of Competition (hereinafter referred to as "the Office") imposed a fine of CZK 13,651,000 on BEKO SPÓLKA AKCYJNA for an infringement of the obligation to provide cooperation...
2023-11-14 / The Office Fined KTA Technika and První SaZ Plzeň for Cartel in the Area of Railway Crossings The Office for the Protection of Competition (hereinafter referred to as “the Office”) imposed fines in the total amount of CZK 3,173,000 on the undertakings KTA Technika, s.r.o., and První SaZ...
2023-11-09 / St. Martin's 2023 conference brought lively discussions on merger changes and increased fines for cartel agreements. On 8 and 9 November 2023, the Office for the Protection of Competition (hereinafter referred to as "the Office") held another annual St. Martin Conference on news and current trends in competition law...
2023-10-31 / Chairman of the Office Confirmed Anticompetitive Conduct of Meal Voucher Issuers, but Fine Shall Be Reconsidered Petr Mlsna, Chairman of the Office for the Protection of Competition (hereinafter referred to as “the Office”), confirmed the conclusions of the first-instance decision on the anticompetitive conduct...
2023-10-25 / The Backpack Manufacturer TOPGAL Entered Into Prohibited Price Agreements and Has to Pay More Than CZK 10 Million for Restricting Retailers The Office for the Protection of Competition (hereinafter referred to as "the Office") imposed a fine of CZK 10,748,000 on TOPGAL a.s., a manufacturer of backpacks and briefcases, for entering into prohibited...
2023-10-05 / St. Martin´s Conference 2023 about competition news, sports and mergers The next annual St. Martin's Conference on latest news in the field of competition law and significant market power will take place on 8 and 9 November 2023 at the premises of the Office for the Protection...
2023-09-22 / Another Fine for Anticompetitive Behaviour in the Pet Food Sector – EUROBEN To Pay CZK 1 Million By its final decision, the Office for the Protection of Competition (hereinafter referred to as "the Office") imposed a fine of CZK 1,066,000 on EUROBEN, s.r.o., a company operating in the pet food distribution...
