Poland fines Jerónimo Martins 161.7 million euros

  • ECO News
  • 14 December 2020

Jerónimo Martins' supermarket chain in Poland, Biedronka, is being accused of exploiting contractual advantages, which have harmed over 200 suppliers.

The Polish supermarket chain Biedronka, owned by Jerónimo Martins, was fined 723 million zlotys (161.7 million euros) in that country for exploiting contractual advantages. This is another fine to be added to those that the Polish regulator has already imposed on Jerónimo Martins.

In question are abusive practices of discounts that resulted in a turnover of over 135 million euros for Jerónimo Martins and ended up harming over 200 suppliers, explains the Competition and Consumer Protection Authority (UOKiK) in a statement.

“At any time the owner of Biedronka could demand a reduction in remuneration by granting an additional discount” and “due to the market power of Biedronka, suppliers agreed to unfavourable conditions for them, fearing that the end of cooperation could mean even greater financial losses,” Poland’s anti-trust authority added.

Quoted in the document, UOKiK Chairman Tomasz Chróstny says “this is an absolutely unacceptable use of market power” by Biedronka and “such practices destroy the foundations of fair competition and responsibility for contractors.”

In August, Jerónimo Martins had already been fined 26 million euros in Poland for deceptive pricing. UOKiK said that the final prices of the products sold by Biedronka were higher than the labels indicated in the shop or that there was no information about the price.