Tractor manufacturer removed anticompetitive provisions from its agreements

16 Sep 2009

The Office for the Protection of Competition (the Office) closed investigation of alleged anticompetitive provisions in agreements on tractor sales and spare-parts sales between companies from the Zetor group and its authorised dealers, services respectively.

The case was dealt with through so-called competition advocacy, outside of administrative proceedings.

The Office ex officio launched investigation in the first half of the year. During the course of the investigation, the Office identified certain provisions in distribution agreements which could have been in conflict with competition law.

Above all, contracts included provisions on: 1) prohibition of sales of competing products for an indefinite period, including restrictions of use of replica spare-parts, 2) commitments on minimum purchase, 3) restrictions for reselling outside of the determined territory 4) possible indirect price maintenance.

In July 2009, company Zetor Trade, s .r.o., which entered into those agreements together with the company ZETOR P.D.C., offered to remove problematic provisions from the agreements.

New wording of the given agreements, which was in compliance with competition rules, was put forth to the Office at the beginning of September 2009. Companies of the Zetor Group also committed to sign updated agreements with their business partners by the end of the month. The alleged anticompetitive state is finally going to be removed by this step.

External Relations Department of the Office