EURONA restricted price competition and online sales, the fine was significantly reduced for extraordinary cooperation

The Office for the Protection of Competition imposed a fine of CZK 12,773,000 on the undertaking EURONA s.r.o. for concluding illegal vertical agreements restricting competition. The fine had not been appealed and has already become final.

EURONA s.r.o. (hereinafter referred to as “Eurona"), set fixed retail prices for its buyers between 3 September 2018 and 16 November 2020 for selling its products, while at the same time restricted online sale of these products via e-shops operated by its buyers. Eurona also checked whether its buyers had followed the set prices and conditions, and then forced price adjustments or the withdrawal of products from online sales by e-mail, even under the threat of sanctions.

According to the Office's decision, Eurona's conduct resulted in the conclusion and implementation of prohibited agreements with its buyers on the direct determination of the resale prices and prohibited agreements on the restriction of internet sales, which led to a distortion of competition in the Czech Republic on the markets for detergents, dishwashing detergents, household cleaners, body care products, plant care products, car care products, pet care products and delicacies and health food products.

In this case, the Office sanctioned the restriction of internet sales for the first time in its history.

While imposing the fine, the Office considered the fact that Eurona voluntarily stopped the anti-competitive practices before the initiation of the administrative proceedings, consequently informed all its buyers about the new business conditions, and carried out a comprehensive revision of its contractual documentation, thereby bringing it into compliance with the competition law. The party to the proceedings also cooperated with the Office to an enhanced standard by confessing to the conclusion and performance of the agreements subject to investigation and by providing the Office with so far unknown evidence relating to the anti-competitive conduct, which significantly contributed to the investigation and proving the existence of an infringement of the Competition Act. The Office therefore reduced the basic amount of the fine by more than half. Eurona also benefited from application of the settlement procedure, which reduced the fine by an additional 20 %.

Press Unit of the Office, translated by Anna Orszulikova (International Unit)
23/004 – S0160/2021