HP Tronic Faces Nearly CZK 40 Million Fine for Dictating Prices to Retailers

HP TRONIC is a major Czech distributor and, in particular, a retailer of consumer goods, primarily electronics. Through its subsidiaries, it operates an extensive network of retail stores and an e-shop.

Since 2012, for more than 10 years, HP TRONIC has set minimum prices on its retail customers for sales to end consumers, thereby restricting retailers from independent setting their own selling prices and selling goods at lower prices. The price-fixing applied to both large and small household appliances, consumer electronics, computer equipment, and telecommunication devices.

HP TRONIC monitored compliance with the set prices and urged retailers who sold goods at lower prices to raise their prices to the set level. In cases of non-compliance with the fixed prices, it actually imposed sanctions on “non-compliant” retailers.

When imposing the fine, the Office took into account that the company had admitted its involvement in anticompetitive conduct and requested the application of the leniency program. A further reduction of the sanction was granted as a result of the company’s enhancement of its internal compliance programme and the fulfilment of the settlement conditions.

The Office for the Protection of Competition has long fought against suppliers dictating retail prices. As a result of these vertical agreements, there is an illegal price harmonisation, as well as an increase in the price level for consumers. In recent years, the Office has imposed significant fines for these practices, particularly in the areas of household appliances and pet food. These included, for example, fines against Electrolux (CZK 125 million), VAFO (CZK 120 million), Groupe SEB (CZK 72 million), Tescoma (CZK 64 million), and others.

26/065 – S0551/2023