UOKiK has published draft guidelines on commitment decisions on
its website. The draft guidelines are open to public consultation
until 26 June 2012.
Commitment decisions are becoming more and more frequent: 125 were
issued by UOKiK in 2011 compared to only 70 in 2010.
Commitment decisions are beneficial for companies as they prevent
them from being fined by the competition authorities. However, they
are only made at UOKiK's discretion.
The draft guidelines specify:
- The circumstances in which a commitment decision may be imposed;
- The relevant conditions that need to be satisfied under a commitment decision.
Guidelines apply to both anti-trust practices and to practices infringing consumers' collective rights. Although not binding, UOKiK has stated that it will apply the guidelines in its proceedings.
The guidelines state that the procedure for issuing a commitment decision is initiated at the request of an undertaking. A commitment proposal must:
- be set out in the undertaking's first letter to UOKiK after proceedings are initiated;
- demonstrate how the commitment will eliminate the adverse market effects of the alleged anticompetitive practice (e.g. by compensating losses to consumers or competitors);
- set out a time frame for execution of the proposal.
UOKiK may require modifications if it is not satisfied with the
commitment proposal. The undertaking must also report regularly on
the implementation of its commitments.
If the undertaking fails to implement the commitment decision at
all or on time, UOKiK can impose a fine or even revoke the
commitment decision and initiate ordinary proceedings.
This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq
Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.
The original publication date for this article was 08/06/2012.