The President of UOKiK initiated proceedings on imposing financial penalty on PKP Cargo, which will verify whether the undertaking duly executed the decision of the Office.

PKP Cargo is one of the largest cargo train carriers in Europe. Until 2001, the company was a monopolist on the domestic market - it was the only entity providing such services. Despite establishing a legal basis for competition, PKP Cargo still has significant market power.

In December 2004, the President of UOKiK considered that PKP Cargo abused its market position by treating unequally its commercial partners, inter alia, by persifying discounts for transport of hard coal and conditions for changing declared mass of transported goods. The President of UOKiK ordered the undertaking to discontinue these practices and imposed a fine amounting to PLN 20  million.

The company unsuccessfully appealed against this decision to courts of all instances. The decision was validated in November 2008 and the undertaking paid the imposed fine. Earlier, in July 2007, the Court of Competition and Consumer Protection, at the request of one of PKP Cargo competitors, ruled part of the decision immediately enforceable, which means that since then, the carrier should have ceased competition-restricting practices.

Armed with the initial findings of the President of UOKiK, the undertaking could have exercised the decision of the Office with delay. That is why the proceedings regarding imposing financial penalty on the entrepreneur were initiated, which will assess whether the undertaking changed anticompetitive practices.

According to the law, the President of UOKiK may impose on the undertaking a fine amounting to EUR 10 000 per each day of delay in execution of the decision.

Additional information for the media:
Małgorzata Cieloch, Spokesperson for UOKiK
Department of International Relations and Communication
Pl. Powstańcow Warszawy 1, 00-950 Warszawa
Tel.:(+48 22) 827 28 92, 55 60 106, 55 60 430
faks (+48 22)826 11 86
E-mail: malgorzata.cieloch@uokik.gov.pl