Pet Food Distributor Fined CZK 36 million
The vertical cartel lasted almost a decade and distorted competition not only in the Czech Republic but also in the EU market. Plaček Pet Products made its business cooperation with its customers contingent on compliance with the agreements and urged them to raise prices to a specified level, even under the threat of penalties, which it imposed in cases of non-compliance with the set minimum prices.
"Vertical agreements setting minimum resale prices have a negative impact on competition by their very nature, as they prevent competition based on the price of goods, which is typically the most important and decisive factor for customers," Kamil Nejezchleb, Vice-Chair of the Office, commented on the case.
In determining the amount of the fine, the Office considered a number of mitigating circumstances. The company voluntarily ceased its anti-competitive conduct immediately following the Office's on-site inspections and subsequently implemented appropriate measures. It informed its customers that setting the final selling price for the consumers was within their authority, cooperated fully with the Office, thereby facilitating the establishment of the existence of the competition law violation, and also implemented a compliance program that is sufficiently effective in light of the functioning of competition in the relevant markets, the nature and type of goods, the business model, and the size of the company.
Plaček Pet Products is a leading distributor of premium pet food and pet supplies on the Czech market. As part of its business operations, the company distributes brands such as Brit, Carnilove, Ontario, and Eukanuba, as well as pet supplies from Beaphar and Repti Planet. It also operates in the retail sector.
Press Unit of the Office
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