Return of the cement cartel? Search in six companies

Office of Competition and Consumer Protection (UOKiK) In 2009 he found a collusion of cement producers. Seven companies that had almost 100 percent market share, for over 11 years divided the market and set prices, exchanging confidential information for this purpose.

“After a dozen or so years after breaking the cement cartel to UOKiK, signals arrived that entrepreneurs could recreate the illegal agreement again. Therefore, the President of UOKiK initiated explanatory proceedings, and UOKiK employees, with the consent of the court and in the assistance of the police, searched the headquarters of six entities” – the office informed the office.

UOKiK said that he searched the headquarters of six entities: Holcim Poland (formerly lafarge), CEMEX Polska, Dyckerhoff Poland, Cement Ożarów, Cement and Mountaineer. According to the office, the suspected agreement may again consist in determining prices and the division of the market, e.g. by allocating customers exclusive, and in effect of a lack of competition for buyers. As part of the cartel, cement plants could inform each other about the increases introduced, which means that the buyers would not receive attractive offers.

– The return of the cartel would be particularly shocking, considering that cement is one of the basic building raw materials, necessary for the development of housing, road infrastructure and the entire economy – said the president of UOKiK Tomasz Chróstny, quoted in the announcement.

He added that “lack of competition and higher cement prices could negatively affect the implementation of strategic projects so important for the development of Poland” – this requires explanation, we intend to look very carefully at this matter, we are currently analyzing the evidence obtained in detail – he noted.

UOKiK pointed out that the companies in which searches were made, appealed, indicating, among others, that correspondence and documents created by members of their management boards, at the same time practicing the profession of legal advisor, should be protected by the protection provided for in the Act on competition and consumer protection, i.e. protection provided for “defense mystery”.

The President of UOKiK questioned these claims, indicating that in connection with performing a function on the board, such a person is not independent of the entrepreneur, even if he practices a legal advisor. The court of first instance dismissed the complaints of entrepreneurs as unfounded, but these provisions are not final.

In a communiqué, UOKiK pointed out that the explanatory proceedings are conducted “in the case” and not against specific entrepreneurs. Only when suspicions are confirmed, the President of UOKiK will start antitrust proceedings and charges with specific entities. Companies are facing a financial penalty of up to 10 percent for participating in the agreement limiting competition. rotation. In turn, managers responsible for collusion can be imposed up to PLN 2 million.

As part of the Entrepreneurs' Payment Program, entrepreneurs participating in an illegal agreement and managers responsible for the collusion have a chance to reduce or sometimes avoid a financial penalty – UOKiK said.

It can be used provided that the Crown Witness was cooperated with the President of UOKiK and providing evidence or information regarding the existence of an unauthorized agreement. UOKiK also runs a program to obtain information from anonymous signalists.