UPDATE: Jeronimo Martins charged with PLN 506 mln fine by Polish district court

Portugal's Jeronimo Martins Group, the owner of Poland's largest retail chain Biedronka, has been charged with a PLN 506 million (EUR 117.2 mln) fine by the district court for obtaining previously unagreed discounts from suppliers of food products; thereby the Court agreed with findings of Poland's antitrust and consumer protection regulator UOKiK indicating that the company was not entitled to such actions, the regulator wrote on X. Biedronka addressed the subject in the e-mail sent to PAP Biznes, saying that the court pointed out far-reaching flaws in the decision imposing the fine on Jeronimo Martins Polska.

In its oral reasoning, the Court emphasised the huge advantage of the Biedronka chain over its suppliers. It also shared the UOKiK's view that the chain has an obligation to perform the concluded contracts and refrain from unilateral price changes. The decision is not final, there is a possibility for appeal.

It added that this is another won case in which the chairman of UOKiK protects market participants against unfair practices of retail chains. Among others, the courts have confirmed decisions on the mislabelling of fruit and vegetables with the country of origin by Kaufland and Biedronka.

In December 2020, UOKiK imposed a fine of more than PLN 723 million (EUR 167.5 mln) on Jeronimo Martins, indicating that the company was making money unfairly at the expense of food product suppliers.

The Biedronka chain, in its statement sent to PAP Biznes, pointed out that as regards the court's ruling, contrary to emerging information, including from UOKiK, the court pointed out far-reaching flaws in the decision imposing the fine on Jeronimo Martins Polska.

"Moreover, the court also pointed out the unreasonableness of treating all suppliers according to the same criteria. Consequently, the court recognised JMP's position to a large extent, amending the decision of the UOKiK's head and dismissing the fine in the part covering PLN 220 million," Biedronka wrote.

"Only with regard to 7 suppliers out of 214 from the fruit and vegetable group did the court, in our opinion, unjustifiably assess the possession of a contractual advantage by the company, and only because the extent of the discounts granted was higher than with regard to the other suppliers," it added.

mcb/ gaw/ mik/ ao/