UOKiK fines a CEO for changing an email password
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In mid-May, the Polish Competition Authority (“UOKiK”) issued a decision imposing a fine on an individual for obstructing a dawn raid conducted by UOKiK officials.
During the 2017 dawn raid, the CEO of Platinium Wellness sp. z o.o. - a gym operator (“the Company”), changed the email password on his computer and refused to provide access to his mailbox to the officials. In effect, UOKiK’s officials lost access to some information that could indicate that a prohibited agreement was in place. In fact, according to UOKiK, the CEO’s behaviour prevented the collection of possible evidence regarding the market-sharing practices among gym operators.
Consequently, UOKiK imposed a fine of PLN 150,000 (approx. EUR 33,500) on the Company’s CEO, and PLN 500,000 (approx. EUR 111,600) on the Company itself for the dawn raid obstruction. The Company was also fined approx. PLN 3 million (approx. EUR 673,000) for dividing the Polish market for the provision of fitness club (gym) services.
It is worth mentioning that UOKiK rarely fines individuals for dawn raid obstruction. In fact, the decision imposed in mid-May is the second-ever case where an individual was fined. The previous fine for such violation of competition law was imposed on an individual in 2002 and amounted to approx. PLN 20,000 (approx. EUR 4,460), so significantly lower than the current case.
The UOKiK decision signals a stricter approach towards individuals. Such an approach is in line with UOKiK’s tendency to fine companies more severely. Furthermore, the UOKiK decision suggests that UOKiK will not hesitate to initiate proceedings against individuals who obstruct unannounced inspections.
All companies should note that not only compliance training on cartels or vertical restraints, but also appropriate internal dawn raid procedures, should be implemented, and their staff should be trained accordingly in order to avoid heavy fines.
In particular, for obstruction of a dawn raid, a company can be fined up to EUR 50 million, and an individual who holds a managerial position (or a board member) up to approx. EUR 63,700, which equals around 50 times the average monthly salary in Poland (in the first quarter of 2021).
For the UOKiK decision (the operative part is publicly available) please see the link.
For more information, please contact Piotr Dynowski and Marcin Alberski.
