The Office of Competition and Consumer Protection (UOKiK) imposed a fine of PLN 723 million on the owner of the Biedronka network – the company Jeronimo Martins Polska – due to the fact that the chain arbitrarily imposed some discounts, UOKiK announced .
“Jeronimo Martins Polska used an unfair mechanism to arbitrarily reduce the remuneration of contractors for deliveries already made. Importantly, additional discounts from food suppliers did not translate into lower product prices for customers of the Biedronka chain. attention that for many companies, supplies to Biedronka represent a significant volume of production, they incurred huge costs. Such practices destroy the foundations of fair competition and responsibility for contractors, are a manifestation of deep dishonesty and disrespect for other entrepreneurs. the law, the nuisance of practice and the amount of unfairly obtained benefits by the Portuguese network. In the three years we examined, Jeronimo Martins Polska deprived its contractors – mainly fruit and vegetable suppliers – of several hundred million zlotys. s, destroying the foundations of honesty and responsibility in relations between entrepreneurs, the sanction could not be low. I have decided to impose a financial penalty on Jeronimo Martins Polska in the amount of PLN 723 million, said the President of UOKiK, Tomasz Chróstny, quoted in the press release.
In the years analyzed by the Office – 2018, 2019 and 2020 – the company Jeronimo Martins Polska in contacts with the food industry earned over PLN 600 million on the questioned practices, UOKiK said.
“During the period covered by the proceedings, unlawful activities affected over 200 entities, with nearly 80% of cases related to the delivery of fruit and vegetables. In extreme cases, the amount of the unfair discount exceeded 20% of the total turnover generated with Biedronka”.
The Office announced that the President of UOKiK is also looking at retro discounts obtained by other retail chains operating in Poland and is investigating the matter.
“The penalty for Jeronimo Martins Polska, the owner of the Biedronka retail chain, is a warning to other chains that similar practices will face a severe penalty from the President of UOKiK. The chance to avoid severe sanctions is the immediate change of retrospective discount mechanisms unfavorable for suppliers. The way from the manufacturer. leads to the consumer through suppliers and sellers, including retail chains – the stability of farms and food producers, the development of the entire agri-food sector and Poland’s food security depend on the honesty of relations between them and mutual responsibility, “stressed Chróstny.
In Q1-Q3 this year The Biedronka chain opened 52 stores, closed 7 and carried out 167 modernizations. At the end of September 2020, the Biedronka chain consisted of 3,047 outlets.
