The Czech Office for the Protection of Competition (ÚOHS) has imposed a fine of CZK 9,904,000 (approximately €400,000) on K+B Progres, a.s., for violating both Czech and EU competition rules. The decision, which became final at first instance, was not appealed by the company.
K+B Progres, a leading Czech distributor of consumer electronics and owner of the ECG household appliance brand, was found guilty of engaging in prohibited vertical price-fixing agreements. According to the Office, the company set minimum resale prices for its retail partners between 2018 and June 2023, monitored their compliance, and imposed sanctions in cases of non-compliance.
This conduct distorted competition in the Czech markets for small and large household appliances and consumer electronics, and—due to its cross-border implications—was also deemed to have infringed EU competition law.
When setting the amount of the fine, the authority considered both the seriousness and duration of the infringement. However, the penalty was significantly reduced because K+B Progres cooperated closely with the Office throughout the investigation, including submitting a leniency application, settling the case, and implementing a competition compliance programme. The company has also been ordered to refrain from enforcing any prohibited agreements in the future.
Resale price maintenance (RPM) agreements—where suppliers or distributors restrict retailers from selling below a specified price—are considered a serious form of anti-competitive conduct under both Czech and EU law. Such practices eliminate price competition between retailers and artificially maintain higher consumer prices.
In recent years, the Czech Competition Authority has issued several fines for similar infringements, particularly in the electronics and animal feed sectors. At the European level, the European Commission has likewise imposed multi-million-euro penalties on several major fashion brands for dictating retail prices, underscoring the EU’s zero-tolerance stance on resale price fixing.