Hungarian Competition Authority imposes fine due to price-fixing

Staff Writer | August 3, 2016

The Hungarian Competition Authority imposed a total fine of 360,000 euros to companies that were involved in price fixing.

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According to the decision of the Hungarian Competition Authority (GazdasÃ¡gi Versenyhivatal â€“ GVH), Alcufer Ipari Kereskedelmi Ã©s SzolgÃ¡ltatÃ³, Fe-Group Invest VagyonkezelÅ‘, TanÃ¡cs adÃ³ Ã©s Nagykereskedelmi and JÃ¡sz-Plasztik had carried out discussions having an anti-competitive objective from June 26, 2013 until March 27, 2014 relating to prices, geographical areas and strategic data.

The GVH imposed a total fine of HUF 112,520,000 (approx. EUR 360,000) on the undertakings for the infringement.

Through its investigation, the GVH revealed that Alcufer, Fe-Group and JÃ¡sz-Plasztik had participated in discussions aimed at the creation of a consortium agreement on the collection of lead-acid batteries.

The agreement was due to become operative on the opening up of a battery processing plant in JÃ¡szberÃ©ny.

The three undertakings under investigation incorporated the details of their discussions into a consortium agreement.

According to the contract, the three undertakings agreed on the allocation of the collection market for lead-acid batteries; Alcufer and Fe-Group undertook that they would sell all or at least a large amount of the lead-acid batteries collected by them to JÃ¡sz-Plasztik, which was building a battery processing plant in JÃ¡szberÃ©ny.

According to the discussions, JÃ¡sz-Plasztik had guaranteed to offer Alcufer and Fe-Group a favourable purchase price (by giving up a percentage of its savings stemming from transportation costs), while it had stated that it would offer a lower purchase price to undertakings which were not party to the agreement.

The undertakings decided to exchange confidential and individualised quantity, pricing and shipping data in order to comply with and supervise the consortium agreement.

The existence of the single and comprehensive plan could be ascertained from the chain of authentic written and personal evidence found in relation to the agreement.

The parties postponed the enactment of the consortium agreement on more than one occasion; in the end, the parties did not sign the agreement and did not apply its content.

However, these factors do not change the fact that the parties intended to create a consortium agreement and do not prevent an infringement from being established.

When determining the basic amount of the fine in the case of Alcufer, Fe-Group and JÃ¡sz-Plasztik, the GVH took into account the net sales revenues coming from the waste management activity relating to lead-acid batteries for the duration of the participation in the infringement on a time proportion basis as a relevant turnover.

This turnover includes both Hungarian and foreign sales revenues coming from the sale of lead-acid batteries and revenues coming from collection fees.

In the case, Fe-Group introduced its settlement submission in which it, among other things, voluntarily admitted the infringement. Consequently, the GVH reduced the fine imposed on Fe-Group by 10%. ■

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Hungarian Competition Authority imposes fine due to price-fixing

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