Vertical agreement case settled
20 Jan 2009
Office for the Protection of Competition (UOHS) settled an administrative proceeding with publishing company Albatros. The company was fined 313.000 CZK for anticompetitive behaviour.
The Office launched investigation of Albatros at the beginning of 2008 in connection with distribution of the Czech version of Harry Potter´s latest book. However, the investigation didn´t cover only the distribution of this book, but vertical agreements between the publishing company and its customers in general.
The investigation showed that Albatros enetered into and fulfilled prohibited agreements which specified to its distributors and retailers to whom they may resell the book. The agreements were applied from 2001, but majority of them had only negligible impact on the market. The most serious behaviour was conducted in connection with issue of the book Harry Potter and the Deathly Hallows, when Albatros tried, through prohibited agreements, to limit distibution of the book into retail chains and therefore restrict price competition between supermarkets and specialised bookshops. Experience shows that retail chains are usually carriers of discounts for end-consumers, while traditional booksellers maintain recommended retail price. Consequently, in the time of the most intense run on the book consumers were limited in possibility to get the title with substantial discount. Observence of the agreements was in this case enforced by the party to the proceeding and its violation was sanctioned. Moreover, Albatros entered into several agreements on retail price maintenance.
Party to the proceeding cooperated during the investigation with officials of the Office, agreed with charges and stated that it is ready for modification of its agreements to comply with competition rules. By acknowledging the responsibility for its anticompetitive behaviour, cooperating with the Office and releasing all demanded information, Albatros fulfilled conditions for settlement procedure and its fine was lowered by as near as 50 per cent.
Department of External Relations of the Office
09/005/HS001