CPC has addressed allegations for committed infringement of Art. 15, par. 1 of the LPC to Smart SM OOD
By Statement No. 732/17.09.2020 delivered under case No. КЗК-359/2018 on the grounds of art. 74, par. 1, item 3 of the LPC, the CPC has addressed allegations for committed infringement of Art. 15, par. 1 of the LPC, manifested in participation in a prohibited agreement for fixing the resale price of child care and mother care products by Smart SM OOD.
The proceedings before the CPC have been initiated upon a signal filed by consumer indicating of permanently identical prices of Medela products in stores operated by various retailers.
On the basis of the filed signal, the CPC has conducted unannounced inspection in the premises of Hipoland AD and Smart SM OOD. The Commission has collected copies of electronic correspondence, contracts, notes from meetings, and other documents indicating that Smart SM reached an agreement for fixing the resale prices of products distributed by it at the level of the recommended resale prices. In the course of the proceedings, the CPC collected detailed information from numerous traders of children's goods on the territory of the country regarding their relations with the supplier Smart SM OOD and the manner of distribution of the products from its portfolio.
On the basis of the evidence collected, the CPC came to the preliminary view that Smart SM entered into an agreement with its clients for fixing the resale price of goods within the distributed product range of the undertaking. The parties to the agreement have reached concurrence not only of the resale price but also of the periods of promotional activities and the range of products to be sold at promotional price by setting the percentage of discount from the regular prices given to the end customer. The purpose of this behavior is to eliminate any price competition between the retailers, which are supplied by Smart SM, thus achieving stable prices, different from those that would occur in a competitive environment or in the absence of a prohibited agreement, which in turn is to the detriment of consumers.
Based on the facts established within the investigation, the CPC finds that Smart SM OOD has reached an agreement with its retailer clients that has as its object to set the resale price offered to consumers/end customers, which by its nature prevents, restricts or distorts competition on the markets of child-care products including nursery and maternal care goods on the territory of the Republic of Bulgaria.
Within 40 days the addressee of the Statement is entitled to submit written objections to address the allegations. The period runs from the day of the Statement receipt.