Xella Polska runs afoul of regulators

The Office for Competition and Consumer Protection (UOKiK) has begun anti-monopoly proceedings against Xella Polska, a producer of building materials, and a number of distributors, accusing them of anti-competitive practices. The proceedings should not take longer than five months and if the firms are found guilty, they may have to pay a fine of up to 10 percent of their previous year's revenue.

UOKiK suspects that Xella Polska worked out an agreement with a number of distributors which aimed to restrict competition by fixing a minimum price for wall-building materials. The watchdog will investigate the issue and determine whether the companies went beyond the accepted norms of cooperation. It will also look into whether the distributors' contractual obligation not to sell materials for a lower price than they paid is restricting competition.

In a statement to the press, Xella Polska announced that it was innocent and that the questioned entry in the agreements is aimed to avoid price dumping. The company's lawyers are investigating the issue and preparing an official statement.

This is not the first investigation of this type conducted by UOKiK in the building materials sector. There are currently 11 cement producers suspected of price fixing, exchanging of confidential information or market splitting.

Anna Kapica-Harward