Positive decision for Eversheds Sutherland's client in the proceedings before the President of the Office of Competition and Consumer Protection regarding payment gridlocks

The lawyers of Eversheds Sutherland Poland have helped the client to positively complete the proceedings conducted by the President of the Office of Competition and Consumer Protection (UOKiK) against ALTRAD-Mostostal. The case concerned the so-called payment gridlocks, i.e. excessive delays in paying remuneration to contractors. ALTRAD-Mostostal was represented by Dr. Dariusz Aziewicz – Senior Associate specializing in competition law.

In December 2020, the President of the Office of Competition and Consumer Protection (UOKiK) initiated proceedings against ALTRAD-Mostostal. Eversheds Sutherland’s client was one of several dozen entities against which the OCCP initiated similar proceedings.

As part of the proceedings, our lawyers managed to prove that the reason for the payment gridlock - which would normally result in imposing a financial penalty on the client - was the fact that ALTRAD-Mostostal was itself a victim of payment gridlocks. Thus, the President of OCCP had to refrain from imposing the fine and content himself with instructing the company on its obligations. The current wording of the anti-gridlock law in force obliges the President of the Office of Competition and Consumer Protection to refrain from imposing a penalty in a situation where the sum of cash benefits not received and received by the company after the deadline is higher than the blockage generated by it.  

From 1 January 2020 all entrepreneurs are obliged to adjust payment deadlines to the amended regulations governing payment deadlines in commercial transactions. The President of OCCP conducts a number of proceedings in this regard. For example, a few days ago, in parallel proceedings, a payment of several million zlotys was imposed on an entrepreneur from the pharmaceutical industry.