[ad_1]
After examining Palink’s supplier agreements in 2018 and 2019, the Competition Council found that although the marketing budget was stated as preliminary, the company required emails from 7 suppliers to use the agreed marketing budget by the end of year.
According to the council, in its emails, Palink instructed suppliers to submit proposals on how the unused marketing budget stipulated in the contracts would be spent, demanded such proposals that would allow for the use of the year-end marketing budget, and provided information. on the unused budget balance. The fact that the marketing budget of the size specified in the contracts was binding on suppliers is also confirmed in the letters on possible negative measures against suppliers, such as the suspension of purchases, the rejection of large quantities during the holiday period, the inability to take individual actions.
According to the Council, a retailer with significant market power and a supplier are not prevented from agreeing on an indicative amount for the planned marketing budget, but such a preliminary agreement on the actual conduct of the retailer should not become a mandatory requirement, as in the present case.
The decision surprised
Mindaugas Tamošiūnas, Head of the Department of Food, Beverages and Non-Food Products of the Department of Commerce and Marketing of the retail chain Iki, which is managed by Palink, said in a comment to Eltai that the decision of the Competition Council was surprising.
“The decision surprised us: the Competition Council itself concluded during the investigation that our vendor sales contracts do not violate the requirements of legal acts, and a separate agreement was concluded for each marketing service. In addition, during the investigation, all suppliers indicated that they were not pressured or encouraged to use the tentatively planned quantity for marketing measures, “says M. Tamošiūnas in the comment.
He said the decision on whether to appeal the council’s conclusion would be made after reading the ruling.
“During the investigation, we cooperated with representatives of the Competition Council and provided them with information in good faith. After knowing in detail the announced resolution, we will decide whether to appeal it, ”says M. Tamošiūnas.
The decision of the Competition Council can be appealed to the Vilnius Regional Administrative Court within 30 days from the day of its adoption.
No part of this publication may be reproduced without the written permission of ELTA.
[ad_2]
