CCA fines TRGOVINA KRK EUR 15,000 for imposition of unfair trading practices

CCA fines TRGOVINA KRK EUR 15,000 for imposition of unfair trading practices

The Croatian Competition Agency (CCA) fined TRGVONA KRK d.d. from Malinska EUR 15,000 for a serious infringement of the Croatian Act on the prohibition of unfair trading practices in the business-to-business food supply chain (UTPs Act).

The CCA opened ex officio infringement proceeding against the buyer TRGOVINA KRK within the meaning of the UTPs Act with the view to establishing whether it used its strong bargaining power and imposed unfair trading practices on its suppliers of agri- and food products.

The investigation showed that TRGOVINA KRK used its strong bargaining power and imposed unfair trading practices on its suppliers by:

• making payments for supplied dry and fresh frozen pasta beyond the statutory 60 day-deadline for deliveries that had not been agreed as regular deliveries;
• making payments for supplied fresh chicken meat exceeding the 30 day-deadline for agreed regular deliveries;
• making payments for supplied fresh and fermented dairy products exceeding the 30 day-deadline for deliveries that had not been agreed as regular deliveries;
• making payments for supplied fresh table eggs exceeding the 30 day-deadline for deliveries that had not been agreed as regular deliveries.

CCA found that TRGOVINA KRK imposed the unfair trading practices mentioned above during the period from 17 April 2022 to 24 November 2022.

In determining the fine in the amount of EUR 15,000 the CCA took into account the gravity, scope, duration, and consequences of the infringement for the suppliers, as well as all circumstances of the case concerned.

CCA found that the imposed fine achieves the purpose of deterrence against infringements of the UTPs Act, not only with regard to TRGOVINA KRK, but also with regard to other actors in the food supply chain.