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Polish competition law and legal control on the Polish market of concentration of enterprises in Poland, including TECH companies, by way of merger, acquisition of control, acquisition of an organized part of property and creation of a new entrepreneur

Control of concentration of entrepreneurs is a legal term for: merger, acquisition of control, acquisition of an organized part of property and creation of a new entrepreneur. Its task is to prevent excessive consolidation, which, if left uncontrolled, could lead to a significant restriction of competition on the market by acquiring or strengthening a dominant position.

The control of concentration of entrepreneurs, performed mainly by the President of the Polish Office of Competition and Consumer Protection, covers transactions that have or could have had a significant impact on the market in Poland. The task of the President of the Polish Office of Competition and Consumer Protection is, inter alia, issuing consents to carry out a specific concentration in order to prevent any restriction of competition on the market. The President of the Polish Office of Competition and Consumer Protection may also issue a decision prohibiting merger. However, it is worth noting that concentration can be allowed under certain conditions. An example of this is the resale of part of the property. The Polish Act on competition and consumer protection of February 16, 2007 also allows for the approval of a merger leading to a restriction of competition, in certain very strictly defined situations. It refers to such events as a result of which there will be economic development; technical progress or simply they will have a positive impact on the national economy.

In accordance with the above-mentioned Act, there may be cases in which there will be no need to notify the intent of the concentration to the Polish Office of Competition and Consumer Protection, because this action will have little impact on the market. It should also include cases where the turnover of the enterprise which is the object of the takeover on the territory of Poland in none of the two financial years preceding the notification was equal to or greater than the amount of EUR 10 million. If the entities belong to the same capital group, there is also no need to notify the concentration to the Polish Office of Competition and Consumer Protection.

If the concentration has been carried out, without prior consent from the Polish President of the Office of Competition and Consumer Protection, the President may take specific steps aimed at restoring the state of effective competition. This effect can be achieved by ordering the division of the entrepreneur / enterprises or ordering the resale of a part of the shares. The President of the Office may also impose a financial penalty of up to 10% of last year’s revenue of the said enterprise, to entities that took part in an unauthorized concentration.

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