Record penalty imposed by the President of the UOKiK

Poland
Available languages: PL

The President of the UOKiK has imposed fines on Gazprom and 5 other companies taking part in the construction of the Nord Stream 2 gas pipeline. The fines have been imposed for carrying out a concentration without first obtaining the consent of the President of the UOKiK. Apart from the fines, the President of the UOKiK also obliged the companies to terminate the agreements concluded for the purpose of financing and implementing the project. The decision is precedential as regards the record amount of the fines. In the opinion of the President of the UOKiK, in spite of the lack of a formal creation of a joint venture, the companies took deliberate steps aimed at circumventing the law and at implementing the investment without obtaining the required consent.

The imposed fines are related to proceedings conducted by the President of the UOKiK in 2016 in connection with the submission by the companies of an application for consent to the creation of a joint venture which would be responsible for the construction and operation of the Nord Stream 2 gas pipeline. The President of the UOKiK voiced objections to the planned concentration, stating that it could lead to a limitation on competition. As a result of these objections, the application was withdrawn, which was tantamount to a failure to obtain consent to the creation of the joint venture. The current proceedings have been ongoing since 2018 and were initiated in connection with information that the companies had concluded agreements related to financing the project. In the opinion of the President of the UOKiK, these agreements were aimed at achieving the same goal as the withdrawn concentration notification.

The fines imposed as a result of the proceedings are the highest in history. The President of the UOKiK imposed maximum fines on all the companies, amounting to 10% of annual turnover: (i) Gazprom – approx. PLN 29 billion (approx. EUR 7 billion); (ii) Engie Energy – approx. PLN 55.5 million (approx. EUR 13 million); (iii) Uniper – approx. PLN 30 million (approx. EUR 7 million); (iv) OMV – approx. PLN 88 million (approx. EUR 21 million); (v) Shell – approx. PLN 30 million (approx. EUR 7 million); (vi) Wintershall – approx. PLN 31 million (approx. EUR 7 million).

The companies can appeal the imposed fines to the Circuit Court in Warsaw – Competition and Consumer Protection Court, within one month from the day the decision is served.