Fakro - a Polish company, which manufactures windows, has filed a complaint at EU level in Brussels against a Danish window manufacturer Velux. This is one of the first antitrust cases initiated by a newer accession state against an old EU member.
Joanna Najfeld reports
The Polish Fakro is world's second largest manufacturer of roof windows. Its market share amounts to 17% globally, and as much as 45% in Russia. On European Union market, however, it is as low as 5%. Fakro claims this is due to unfair commercial tactics on the part of world's largest roof window producer, the Danish Velux.
'It is important to note that EU antitrust rules impose special obligations on dominant companies not to foreclose competitors from entering, remaining or expanding in the market place by, for example, raising barriers to entry, abusive pricing or rebates or by unfair contractual conditions. Polish Fakro is apparently alleging that Danish Velux is using its position in such a questionable way,' says Piotr Bonisławski, a consultant with European Public Affairs firm Kreab in Brussels.
Velux has been defending its position, saying that it has been "subject to many years of scrutiny" by various regulators. Velux representatives also said that they have already been contacted on this particular issue by the Polish Competition Authority two years back. The case was, however, passed on to Brussels, because it involved a number of EU states.
Brussels regulators have already worked on state aid cases in younger EU member states, but the present case is the first major complaint coming from eastern Europe against a company from western Europe.
Fakro's success will depend not only on the evidence but also on how, when, and to whom arguments and messages are communicated throughout the proceedings, adds Piotr Bonisławski: 'Companies involved in competition cases often forget that DG Competition is not the only relevant Department of the European Commission with whom they need to communicate in order to increase their chances of success. Moreover, the Commission does not only assess competition cases from a pure legal perspective – also economic analysis is an important element and the political landscape should always be taken into account. To increase chances of success, it is important to formulate and communicate important messages in the right way and at the right time to the relevant decision makers in the Commission, the Council and the Parliament. To do this, it is however also necessary to know how those institutions operate on the inside and that is where lobbying firms like Kreab are comming into play.'
On thing is clear - the commission has become more forceful in antitrust cases over the past few years and this is reflected in ever increasing fines, which may be even amount to hundred of millions of Euros.