Polish regulators crack down on payment delays as businesses face growing challenges

The Office of Competition and Consumer Protection (UOKiK) has intensified efforts to combat payment bottlenecks, launching eight new proceedings against companies accused of delaying payments to contractors. The agency also issued 21 soft interventions urging businesses to improve their payment practices, signaling a heightened focus on ensuring financial discipline in commercial transactions.

According to UOKiK President Tomasz Chróstny, the agency’s primary tool in tackling late payments is anti-congestion proceedings, which allow for administrative fines against entities failing to settle payments on time. In 2024 alone, UOKiK initiated 31 such proceedings, targeting companies including Gemini Apps, Colian Logistic, Nivea Polska, Stellantis Gliwice, Coty Eastern Europe, SPX Flow Technology Poland, Moto-Truck, and Meliorex.

Beyond formal investigations, UOKiK employs soft interventions, issuing written warnings to businesses whose payment practices raise concerns. These warnings serve as a preventative measure, encouraging companies to rectify their behavior before facing legal proceedings. Since the beginning of 2024, 79 companies have received such notices, with the latest round of interventions issued to 21 additional firms at the end of the year.

The regulator actively monitors the market through independent analyses and notifications from businesses that suspect they have been affected by delayed payments. Last year, UOKiK reviewed 28 such complaints, using them as the basis for investigating potential violations of financial obligations.

The Cost of Payment Delays

Payment bottlenecks pose a significant risk to businesses, causing cascading financial strain across supply chains. When companies fail to receive timely payments, the resulting liquidity shortages affect multiple stakeholders, threatening financial stability within entire industries.

Under Polish law, an entity is considered excessively delayed in payments if, over three consecutive months, it fails to meet financial obligations totaling at least PLN 2 million. Companies found guilty of such violations face administrative fines, calculated based on the total overdue amount and the length of delays.

Penalties are determined in a two-stage process. Initially, a maximum fine is set based on formulas outlined in anti-congestion laws. The second stage allows UOKiK to adjust the penalty depending on mitigating factors, such as the company’s efforts to correct the issue, its level of cooperation with authorities, and the broader impact of the delay.

As regulatory scrutiny increases, businesses across Poland are under mounting pressure to improve payment discipline and comply with timely settlement obligations. UOKiK’s proactive approach underscores its commitment to maintaining financial stability and fair competition in the market.

Source: UOKiK
Photo: Tomasz Chróstny, President of the Office of Competition and Consumer Protection (UOKiK)