The decision concerned the Commission’s ex-officio investigation against the Pancyprian Organisation of Cattle Farmers (POCF) Public Ltd for the alleged infringement of competition law, during the period 01/01/2009 until 28/05/2012, through decisions and/or practices and/or behaviors on the part of POCF in relation to the sale/ supply of raw cow milk, which was likely to lead to prevent, distort and restrict competition.
On October 17, 2014, the Commission unanimously adopted Decision No. 42/2014.
By its decision, the Commission concluded that the POCF infringed (i) Section 3(1)(a) of the Law by entering into exclusive supply contracts for raw cow milk with cattle farmers, members of the POCF, that included specific terms for determining the purchase prices of raw cow milk; (ii) Section 3(1)(b) of the Law by entering into exclusive supply contracts for raw cow milk with cattle farmers/members of the POCF that included exclusivity clauses and non-compete obligations; (iii) Section 3(1)(b) of the Law by the implementation of the measure of “Stable Milk Production”; and (iv) Section 6(1)(a) of the Law, as a dominant undertaking on the relevant market by imposing excessive and/or unfair prices for raw cow milk.
The Commission ordered the POCF to end the above infringements and imposed administrative fines arising to €2,100,000 as follows:
• An administrative fine of €600.000, regarding the infringement of Section 3(1)(a) of the Law.
• An administrative fine of €600.000, regarding the infringement of Section 3(1)(b) of the Law concerning the enforcement of exclusivity clauses and non-compete obligations.
• An administrative fine of €100.000 regarding the infringement of Section 3(1)(b) of the Law concerning the implementation of the measure of “Stable Milk Production”.
• An administrative fine of €800.000, regarding the infringement of Section 6(1)(a) of the Law.
COMMISSION FOR THE PROTECTION OF COMPETITION
|