Makro chain was fined CZK 83 million for violating the Act on Significant Market Power

The Makro Cash & Carry retail chain received a fine of CZK 83.1 million from the Office for the Protection of Competition (ÚOHS) for violating the Act on Significant Market Power. The decision is not final and an appeal can be lodged against it, the Office of ÚOHS announced. According to ÚOHS, Makro abused its forces in dealing with suppliers. At the same time, the Office fined Metro International AG a fine of CZK 316,000. Both companies, as purchasing alliances, violated the law in the sale of agricultural and food products.

"The companies negotiated contractual terms with their suppliers, which created a significant imbalance in the rights and obligations of suppliers as weaker parties. Makro's suppliers were in a significant information asymmetry, as a result of which they were forced to enter into an accounting contract with Metro," he said. The Office stated that this behavior dated from October 2016 to February 2020. The ÚOHS Office found such behavior towards five hundred suppliers.