In response to a question from MP Marijan Pavliček during a session of the Croatian Parliament regarding prices in stores, Prime Minister Andrej Plenković agreed that food prices are too high, but emphasized that he does not see any pressure on retailers and that a ‘serious job should be done by the Agency for the Protection of Market Competition’ (AZTN), along with the state, the inspectorate, and consumer protection associations.
The Prime Minister disagreed with Pavliček that the reason for hyperinflation is the entry into the eurozone and the introduction of the euro, instead vaguely shifting the responsibility to state bodies that should investigate the reasons for high prices in stores. In mentioning AZTN, he indirectly (without explicitly stating) suggested that there may be a cartel agreement among retailers.
We were interested in what exactly AZTN should do, apart from its usual responsibilities – investigating possible agreements among entrepreneurs. From AZTN’s response, it can be concluded, although not explicitly stated, that regarding high prices, this state body has nothing to do or investigate, as Prime Minister Plenković told MP Pavliček in his response.
Namely, AZTN reminded in its response that Article 8 of the Competition Protection Act (ZZTN) prohibits agreements between two or more independent entrepreneurs, decisions of entrepreneurs’ associations, and coordinated actions that have the aim or effect of distorting competition in the relevant market. This particularly applies to those agreements that directly or indirectly determine purchase or sale prices, or other trading conditions, regardless of whether such agreements are made between entrepreneurs operating at the same level of production or distribution (horizontal cartel agreements) or between entrepreneurs who do not operate at the same level of production or distribution (vertical agreements).
When One Price Rises, All Prices Rise
However, as of the time of writing this response to Lider, AZTN had not received any complaints or submissions, not even anonymously through the platform on AZTN’s website, the content of which would indicate the existence of indications of a possible retailers’ cartel. It has not received any confession that would indicate its involvement in a possible retail cartel, aimed at obtaining immunity from a monetary fine or a reduction of a monetary fine within the framework of a leniency program. Of course, unless Prime Minister Plenković reports a possible retailers’ cartel due to high prices of goods on their shelves.
