AZTN fines two companies, initiated administrative proceedings against one

The Agency for the Protection of Market Competition has fined the Zagreb company Ultra gros €15,000 due to a serious violation of the Law on the Prohibition of Unfair Trading Practices in the Food Supply Chain, the regulatory agency reported on Thursday.

The Agency reported that it has initiated administrative proceedings ex officio against the buyer Ultra gros to determine whether this buyer, by exploiting significant negotiating power, imposed unfair trading practices on its suppliers of agricultural and food products.

After conducting the administrative proceedings, AZTN determined that Ultra gros exploited significant negotiating power by imposing unfair trading practices.

It was found that Ultra gros purchased agricultural and food products from 57 suppliers based on 62 contracts that stipulated the buyer’s right, at the supplier’s expense, to refuse acceptance of delivery and return to the supplier goods that were not delivered within a sufficient shelf life, or a valid period that allows the buyer to sell the goods before the expiration date, without clearly, measurably, and transparently stipulating what is considered a sufficient or valid shelf life of the products.

In this way, it failed to stipulate a provision essential for the business relationship with suppliers, which is contrary to the provisions of the ZNTP and constitutes an unfair trading practice. Such unfair trading practices, as stated by the Agency, were imposed by the buyer from March 1, 2022, to September 6, 2023.

Similarly, AZTN determined that Ultra gros purchased agricultural and food products from 37 suppliers based on contracts that contain a provision obliging the supplier, once a year, when requested by the buyer, to conduct a quality analysis of the products and bear the cost of that analysis, regardless of its outcome, meaning even when such analysis shows that the product meets the agreed quality, and regardless of regular analyses that the supplier had previously conducted.

This represents an unfair trading practice since an additional quality control of the products was contracted at the supplier’s expense regardless of the outcome of that control. Such unfair trading practices were imposed by the buyer from March 1, 2022, to September 6, 2023.

BOSO also fined

Due to a serious violation of the Law on the Prohibition of Unfair Trading Practices in the Food Supply Chain, AZTN also fined the Vinkovci retail chain BOSO €20,000, the regulatory agency reported on Tuesday.

The Agency reported that it has initiated administrative proceedings ex officio against the BOSO retail chain to determine whether this trader, by exploiting significant negotiating power, imposed unfair trading practices on one of its suppliers of agricultural and food products.

After conducting the administrative proceedings, AZTN determined that BOSO exploited significant negotiating power by imposing unfair trading practices under the ZNTP on its supplier of agricultural and food products.

It was found that BOSO, from August 8, 2020, to November 26, 2020, made payments to the mentioned supplier with deadlines longer than 60 days from the date of receipt of the agricultural or food product that is the subject of delivery, or longer than 30 days from the date of receipt of the fresh product that is the subject of delivery.

AZTN determined the monetary fine of €20,000 considering the severity, scope, duration, and consequences of the violation for the supplier, as well as several mitigating circumstances. AZTN believes that with this imposed monetary fine, the goal of its imposition in terms of deterring violations of the ZNTP has been achieved, not only concerning BOSO but also regarding other addressees of the ZNTP.

Administrative proceedings against the trading company Decentia

Against the retail buyer-trader Decentia AZTN has initiated administrative proceedings to determine whether this buyer exploited significant negotiating power by imposing unfair trading practices on its suppliers of agricultural and food products.

AZTN initiated the proceedings ex officio, as during the market research of agricultural and food products and the verification of compliance of retail buyer-traders with the provisions of the Law on the Prohibition of Unfair Trading Practices in the Food Supply Chain, among which is Decentia, indications were found that this buyer acted contrary to the provisions of the ZNTP in its business operations, as highlighted in the announcement on AZTN’s website.

AZTN notes that the mere initiation of administrative proceedings against a particular buyer does not necessarily mean the establishment of a violation of the ZNTP, but in the initiated administrative proceedings, AZTN is obliged to determine all relevant facts and circumstances, i.e., specific evidence that confirms the indications that were the reason for initiating the proceedings.

AZTN will examine all elements related to the content and realization of Decentia’s business relationships with its suppliers of agricultural and food products and will only make a substantive decision after fully establishing the factual situation.

Due to the protection of business secrets, AZTN cannot comment or disclose details about the ongoing proceedings, they stated, noting that upon completion of the proceedings, a substantive decision will be published on their website.