The Office Imposed a Fine of Almost CZK 64,000,000 on TESCOMA for Restricting Price Competition between Retailers

2023-07-18
The Office for the Protection of Competition (hereinafter referred to as “the Office”) imposed a fine of CZK 63,952,000 on TESCOMA s.r.o. (hereinafter referred to as "TESCOMA") for many years of infringing Czech and EU competition rules.

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

 

2024-07-11 / English Version of Annual Report 2023 published The Office for the Protection of Competition presents the English version of its annual report for the year 2023, summarising the results of its activities in all areas of its competence, i.e., in the...

2024-06-19 / Office for the Protection of Competition Cooperates with European Public Prosecutor's Office Today in Luxembourg, Mr Petr Mlsna, the Chairman of the Office for the Protection of Competition, signed an agreement with the European chief prosecutor, Ms Laura Codruţa Kövesi, on cooperation between...

2024-05-09 / The Office Revealed and Punished Another Cartel Agreement between Construction Companies The Office for the Protection of Competition imposed fines totalling CZK 7,442,000 on the construction companies B.H.S. BOHEMIA, a.s., SEŽEV facility s.r.o., COMMODUM, spol. s r.o. and Hroší stavby...

2024-04-23 / EP ENERGY TRADING Infringed Competition Act by Early Implementation of Merger With Gazela Energy The Office for the Protection of Competition (the Office) imposed a fine of CZK 18,840,000 on the undertaking EP ENERGY TRADING. for concluding a concentration between undertakings prior to the notification...

2024-04-18 / Sector Inquiry on Waste Management The Office for the Protection of Competition (the Office) has initiated a large-scale sector inquiry focused on waste management. Over the next two years, the Office shall obtain information from all...

2024-04-09 / Zásilkovna will share pick-up points thanks to the intervention of the Office, more options for consumers The Office for the Protection of Competition (“the Office”) accepted commitments from an undertaking Zásilkovna s.r.o. consisting of an amendment to the contractual terms and conditions concluded...

2024-04-05 / Fine of CZK 8 million for Another Pet Food Distributor Forbiding Lower Prices By the first-instance decision, the Office for the Protection of Competition (“the Office”) imposed a fine of CZK 8,656,000 on the undertaking Dibaq a.s. for entering into prohibited agreements on...

2024-04-03 / The Office Imposed a Fine of CZK 72 million on Distributor of Moulinex, Rowenta, Krups and Tefal Products The Office for the Protection of Competition (hereinafter referred to as “the Office”) imposed a fine of CZK 72 333 000 on the undertaking Groupe SEB ČR s.r.o. for prohibited agreements on resale...

If you want to recieve news by email please give us your adress and choose topic.

Email:
Significant Market Power
Public Procurement
State Aid
Competition
Significant Market Power
cs | en
+420 542 167 111 · posta@uohs.gov.cz