The Czech Office for the Protection of Competition (ÚOHS) has reached a final resolution in its case against Drupork Svitavy, officially upholding a fine of CZK 2,600,000, which is approximately 103,000 EUR, for the abuse of significant market power. Petr Mlsna, the Chairman of the Office, confirmed the penalty following an unsuccessful appeal by the company, which is a member of the RABBIT CZ agricultural group. The decision concludes an investigation into unfair commercial practices that occurred between January 2023 and June 2024, marking an enforcement of recent legislative updates in the agri-food sector.
The core of the violation involved Drupork’s failure to adhere to the statutory 30-day invoice maturity period for its suppliers. According to the findings, the pork producer applied excessively long payment terms to four different suppliers of compound feed. Across 55 documented instances, the delays were substantial, with some payments arriving more than 280 days after the invoice delivery date. These practices effectively forced suppliers to wait up to three-quarters of a year for compensation, resulting in an estimated damage of approximately CZK 985,630, or roughly 39,000 EUR, due to the late payments.
Chairman Mlsna characterized the conduct as a serious illegal act given its duration and systematic scope. In his final decision, he noted that the fine represents 0.53% of Drupork’s net turnover for 2024, a figure deemed appropriate and within legal limits. The penalty was designed to reflect the gravity of the damage caused to the affected suppliers while adhering to established administrative practices for penalizing the exploitation of market dominance.
This case is part of a broader crackdown by the ÚOHS following the 2023 amendment to the Act on Significant Market Power and Unfair Commercial Practices. Throughout the past year, the Office initiated nearly two dozen administrative proceedings based on sector-wide investigations into the agricultural and food industries. While many companies have faced sanctions for similar payment violations, totaling over 455,000 EUR in fines last year, Drupork Svitavy was the only entity to appeal its fine.
