The Office Imposed a Fine of Almost CZK 64,000,000 on TESCOMA for Restricting Price Competition between Retailers
The fine was significantly reduced due to the company's cooperation and settlement with the Office. No appeal was filed against the decision and it has already become final.
According to the Office's findings, TESCOMA determined minimum retail prices for its customers to sell its goods to end consumers in the period from 3 December 2015 to 15 June 2021. Thus, the buyers could not sell the goods cheaper than the fixed price. Compliance with the minimum retail prices set by TESCOMA was a precondition for business cooperation with its customers. It also carried out checks on compliance with this requirement and urged customers to increase their prices to the level set.
Distributors or retailers have the possibility to set recommended retail prices for their buyers/resellers. However, this must not be a fixed or minimum price, as this restricts competition between retailers who cannot compete for customers through the price.
The Office decided that the undertaking TESCOMA had concluded and implemented prohibited agreements with its customers on direct resale price fixing with the aim and effect of distorting competition in the glassware, ceramic, tableware and kitchenware markets in the Czech Republic, whereas these agreements were capable to affect trade between the EU Member States.
In view of the long-term nature of the anticompetitive conduct, the fine imposed could have been significantly higher. However, the Office took into account the above-standard cooperation of the party to the proceedings, the implementation of an effective competition compliance programme and the fulfilment of the settlement conditions, for which it substantially reduced the fine.
Press Unit of the Office for the Protection of Competition
23/101 – S0262/2021
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