There is a chill in the Polish technology and consumer electronics retail sector that has nothing to do with the seasonal weather. The Office of Competition and Consumer Protection(UOKiK) has made a decisive move, conducting searches at the headquarters of key players: listed giants AB and Action, GT Group distributor Tomaszek and white goods manufacturer Beko. The scale of the operation, conducted assisted by the police, suggests that the regulator is not just looking for minor misconduct, but is tracking systemic price collusion.
For market observers, the entry of controllers into AB S.A. – a leader in the CEE region with revenues of almost PLN 15 billion – is a signal that the proceedings strike at the very heart of the supply chain. If the suspicions of horizontal and vertical agreements are confirmed, we will witness one of the largest antitrust trials in this part of Europe. UOKiK president Tomasz Chróstny points to the potentially wide reach of the collusion, which could involve not only wholesalers but also the largest electromarket chains.
From a business perspective, the stakes are gigantic. The IT and consumer electronics/appliances distribution system is based on low margins and huge volumes. Any interference in the free market by artificially maintaining prices or dividing spheres of influence hits consumers’ wallets directly, but above all destroys fair competition between smaller players. For the companies involved, the risk is twofold: financial and reputational. Fines of up to 10% of annual turnover can drastically shake the liquidity of even such large entities, and the personal liability of managers (up to PLN 2 million) casts a shadow over the corporate governance (ESG) of the companies listed on the WSE.
The secured hard drives and documentation are currently being analysed. Proceedings are ongoing “in the case”, which gives companies room to cooperate, but the stock market reaction of investors is rarely balanced in the face of legal uncertainty. If the evidence proves solid, the Polish electronics market is in for a painful adjustment in trading standards. In the world of modern retail, where pricing algorithms are increasingly replacing traditional negotiations, the line between optimisation and collusion is becoming a priority battleground for regulators.
