Major Hungarian wholesaler of fishing equipment caught by Competition Authority
EnglishThe Hungarian Competition Authority (GVH) has started proceedings against one of the largest domestic companies engaged in the wholesale of fishing equipment for allegedly sanctioning resellers for selling below the recommended prices.
The Hungarian Competition Authority started competition supervision proceedings against TOP-FISH 2001 Kereskedelmi és Szolgáltató Kft. because of the alleged violation of the prohibition of agreements restricting economic competition.
The company is one of the major wholesalers in the domestic market for fishing equipment, dealing with brands such as NEVIS, SPOR, STÉG, and premium category Van Den Eynde.
In the course of the proceedings, the Hungarian Competition Authority examines whether the agreements between the wholesaler and its retail partners may have distorted competition in the Hungarian market for fishing equipment.
Manufacturers and wholesalers can legally set recommended retail prices for the products they sell. However, retailers should be free to set their own consumer prices even below the prices recommended by wholesalers. This can result in more intense competition between retailers, which is favourable for consumers.
The initiation of the competition supervision proceedings in itself does not mean that the company has actually committed an infringement.
The procedure aims to examine the facts and thereby find evidence of the alleged infringement. The proceedings have to be conducted within six months, which can be extended twice, if necessary, by a maximum of six months each.
