Retail chain Albert has proposed commitments; contracts will be modified for benefit of suppliers

2019-08-26
The Office for the Protection of Competition terminated the administrative proceeding against retail chain Albert initiated due to possible abuse of significant market power after the Albert´s commitment to modify its contracts with suppliers. After the intervention of the Office, the unilateral provisions to the detriment of suppliers because of which they were not adequately compensated will be removed from the contracts. The decision is already final.

 

The Office commenced administrative proceedings with Albert Česká republika, s.r.o. in the mid-2018 for potentially unlawful provisions in its model contracts used in 2016 and 2017. The problematic provisions concerned, for example, property penalties resulting in supplier’s obligation to pay a contractual penalty to customer in case of delay with a purchase contract performance. These obligations were not compensated by corresponding obligations or sanctions on the customer´s side. The Office also identified as problematic the mechanism of changes in purchase prices and setting of discounts.

The party to the proceedings has proposed the commitment to amend some of the contractual provisions; particularly committing itself to new obligations in the updated contracts. This will result in a balanced range of rights and obligations on both sides of contractual relationship. The contracts should be adjusted by early 2020, and all Albert´s suppliers will benefit from this amendment.  

 Press Unit

19/081/VTS003-S0209/2018

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