Czech Authority Fines Plaček Pet Products Over Resale Price Maintenance

2 Min Read
Photo by 龙 赵 on Unsplash

The Czech Office for the Protection of Competition (ÚOHS) has imposed a fine of CZK 36.438 million (~€1.49 million) on Plaček Pet Products s.r.o., a leading distributor of premium pet food and supplies in the Czech Republic. The penalty follows an investigation revealing that the distributor engaged in illegal resale price maintenance (RPM) by setting minimum retail prices for its customers over a period lasting nearly nine years, from January 17, 2013, to March 3, 2022.

According to the antitrust authority, Plaček Pet Products made commercial cooperation conditional on adherence to strict price floors for dog and cat food as well as general pet accessories. The company actively encouraged retailers to raise consumer prices to fixed levels and threatened sanctions against buyers that failed to comply with the established minimums. ÚOHS emphasized that this vertical cartel restricted intra-brand price competition across the Czech market and impacted trade within the broader European Union.

Kamil Nejezchleb, Vice-Chairman of ÚOHS, noted that vertical agreements fixing minimum resale prices naturally harm competition by removing price flexibility, which represents the primary parameter for consumer decision-making.

The final financial sanction reflects a substantial reduction from initial exposure levels due to several mitigating factors acknowledged by the competition authority. Plaček Pet Products voluntarily ceased its anti-competitive practices immediately following an unannounced inspection by ÚOHS officers and promptly notified customers that final retail pricing remains strictly within their individual discretion.

Additionally, the company fully cooperated with regulators during a formal settlement procedure, waiving its right to appeal to render the decision final. The distributor also developed and implemented an internal antitrust compliance program tailored to its operational model, business size, and specific product categories, which include major distributed brands such as Brit, Carnilove, Ontario, Eukanuba, Beaphar, and Repti Planet.