The Office starts a probe into the entire vertical chain for several food products in terms of price increase
„The aim of the investigation is to find out in which part of the vertical chain from primary producers, through food processors to retailers the biggest increase in margins has occurred and whether there is a dysfunction somewhere in this chain which the Office could address in terms of competition rules or significant market power,“ said Petr Mlsna, the Chairman of the Office.
In this context, it is necessary to emphasize the powers of the Office, in particular the fact that the Office is not a price regulator. A high price of a product or an apparently unreasonably high margin does not constitute an infringement of competition rules or the Act on the Significant Market Power. The Office would have to find evidence of a cartel agreement or abuse of a dominant position and/or abuse of significant market power vis-à-vis a supplier aimed directly at the price increase. A high price or margin may indicate that such an offence has been committed, but it is by no means a conclusive proof.
Should the Office discover signs of possible anticompetitive conduct or abuse of significant market power, it initiates administrative proceedings in which fines of up to 10% of annual turnover may be imposed on the offenders.
Press Unit of the Office for the Protection of Competition
23/022
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