Detailed Twinning Light Project Fiche

Project title: Competition and consumer protection policy

Twinning Light Component No. PL2006/IB/OT/02/TL

Beneficiary institution: The Office of Competition and Consumer Protection (OCCP) - Poland

Maximum Budget:220000 €

DETAILED TWINNING LIGHT PROJECT FICHE

1. BACKGROUND

Beneficiary country’s competition and consumer protection policy

The President of the Office of Competition and Consumer Protection is a central agency of the state administration. The tasks of the President of the OCCP initially focused mainly on counteracting practices restricting competition and control of concentration of undertakings. In terms of competition protection the primary instrument at the President's disposal comprises antimonopoly proceedings in cases of competition restricting practices – abuse of a dominant position on the market and prohibited agreements (cartels).

As time passed, the scope of tasks of the President of the OCCP was largely extended.In the domain of consumer protection, apart from executing the State’s policy in this area (consisting, among others, in preparing drafts of legal acts), the President of the Office has been vested with the obligations to combat practices that violate collective consumer interests, to eliminate illegal contractual provisions from trade and be responsible for market surveillance. The President of the OCCP represents Poland within the Consumer Protection Cooperation (CPC), which incorporates public institutions responsible for consumer protection in the EU.

Since 2004 the President of the OCCP has been opining state aid projects granted to undertakings as a part of aid schemes and individual decisions before they are notified to the European Commission.

Together with Poland’s accession to the European Union, which took place at the same time as the enforcement of regulations that reformed the competition protection system in the Community, the President of the OCCP received a range of new duties.Among others, he became part of the European Competition Network, which is constituted by the European Commission and anti-monopoly offices of Member States. For the OCCP, this mainly results in the obligation to directly apply the regulations of the Treaty establishing the European Community, in case the practice that restricts competition may affect trade between Member States.

The tasks entrusted to the President of the Office aim at protecting competition which enables optimal market conditions for the operation and growth of entrepreneurs, as well as provides the consumers with the right to select products of appropriate quality, care for their safety and respect of their rights by the entrepreneurs

An important step in the development of the competition protection system was the Act of 15December 2000on competition and consumer protection (entered into force on April 2001). The Actdefined the principles of functioning of the entire system of competition and consumer protection, in which the President of the OCCP takes the central position.

On 16 February 2007 a new Act on competition and consumer protection was adopted. In order to improve the effectiveness of the OCCP's operations, the Act eliminated the institution of proceedings launched upon a motionwith regard to practices restricting competition and infringing collective consumer interests. The Act empowers the President of the OCCP to impose fines on undertakingswho have infringed collective consumer interest.

As regards organisational changes, in 2007 the Department of Competition Policy was divided into the Department of Concentration Control (its main task is to monitor the level of concentration in the different domestic markets and conducting antimonopoly proceedings) and the Department of Competition Policy (its activities focus on counteracting anti-competition agreements and abuses of the dominant position).

The organisation chart is attached as annex no.2.

OCCP Departments

DEPARTMENT OF COMPETITION PROTECTION

The activities undertaken by the Department of Competition Protection on behalf of the President of the OCCP focus on counteracting anti-competition agreements and abuses of the dominant position. The Department of Competition Protection is responsible for conducting proceedings and drafting decisions regarding the aforementioned practices. The Department also prepares the President of the Office’s positions on any appeals, complaints and cassations that may be filed in relation to the his decisions. At the same time the Department monitors the implementation of the President of the OCCP’s rulings. The staff of the Department of Competition Protection represent the Office in legislative works relating to competition policy, draft governmental competition development programmes and periodic reports on their implementation. The Department of Competition Protection cooperates with the Department of Legal Affairs and European Jurisprudence and the Department of Market Analyses.

Since 1 May 2004 the scope of competence of the Department of Competition Protection has been broadened to include cooperating with the European Commission and the competition authorities of the other EU Member States within the framework of the European Competition Network. The cooperation is aimed at coordinating competition protection activities at the Community level and results from the national authorities being entrusted with applying the Community competition law (Article 81 and 82 of the EC Treaty).

DEPARTMENT OF MARKET ANALYSES

The Department’s main task is to analyse the information on the state of competition in different domestic markets. The Department of Market Analyses carries out research of the markets which, due to distortions of competition, are the object of the OCCP’s proceedings and also researches the markets which due to their vulnerable structure are prone to violations of competition law. In the event that the research provides sufficient evidence to suspect that the law was violated, the Department of Market Analyses notifies the Office’s management of the need to initiate proceedings.

In recent years the following markets have been, among others, the object of particular interest of the Department of Market Analyses: landline and mobile telephony, pharmaceuticals, fuels, services provided by liberal professions and financial products and services. The Department of Market Analyses coordinates the research operations of other units of the Office, by means of preparing research schemes and participating in shaping the governmental competition policy. The Department monitors the changes occurring in the Community competition policy and prepares internal reports on the research performed. The results of the analyses are used inter alia in publications of the Office.

Furthermore, the Department creates and manages databases relating to the state of competition in Poland, as well as assists other OCCP departments by means of preparing economic analyses for the purposes of proceedings carried out by the Office.

DEPARTMENT OF CONCENTRATION CONTROL

The main task of the Department of Concentration Control is monitoring the level of concentration in the different domestic markets and conducting antimonopoly proceedings. The Department drafts legislative acts, issues opinions on them, prepares the OCCP decisions on the matters of concentrations, divisions of undertakings and fines. The Department closely cooperates with European Union bodies and other national competition authorities within the EU.

DEPARTMENT OF CONSUMER POLICY

The main task of the Department is shaping and implementing the government consumer policy. To this end the Department conducts administrative proceedings concerning practices infringing collective consumer interests. The Department also initiates legislative works on the creation or amendment of consumer protection regulations.

The Department’s responsibilities also include filing court cases (after consulting the Department of Legal Affairs and European Jurisprudence) for recognizing given contractual clauses as abusive. The Department of Consumer Policy supports local authorities, national non-governmental organisations and other institutions whose tasks include protection of consumer interests. The Department also initiates tests of products and services. Furthermore, the Department of Consumer Policy actively collaborates with the European Commission and national consumer protection authorities in the other EU Member States within the framework of the Consumer Protection Cooperation.

DEPARTMENT OF MARKET SURVEILLANCE

The Department of Market Surveillance monitors different sectors of the economy with the aim of eliminating dangerous products, goods non-compliant with the essential requirements and poor quality fuels.

As for its responsibilities regarding general product safety, the Department approves plans of safety inspections of products, monitors the inspections and evaluates their effectiveness. It also conducts proceedings relating to product safety. The Department keeps a register of dangerous products and gathers all information on such product in order to subsequently forward it to relevant market surveillance authorities. It also collects notifications submitted by producers and distributors on non-compliant products placed on the market.

On behalf of the President of the OCCP, the Department of Market Surveillance monitors the system of controlling product compliance with the essential requirements provided for by the national legislation transposing the so-called New Approach Directives into the Polish law. The Department cooperates with the specialised market surveillance authorities issuing opinions on their plans of inspections and forwarding them the information on the products non-compliant with the essential requirements that are placed on the market. The Department also keeps a register of such products. The Department of Market Surveillance performs the President of the OCCP’s tasks with respect to managing the fuel quality monitoring and scrutinizing system. The Department draws up the principles and programmes of filling stations and fuel wholesalers inspections (which are carried out by the Trade Inspection). It also prepares regular reports for the Polish Council of Ministers and the European Commission on the quality of liquid fuels sold in the Polish market. The Department also maintains a database facilitating its scrutinizing duties (records of undertakings, filling stations, fuel wholesalers and certified laboratories authorised to carry out fuel tests).

Project description & justification

The overall Transition Facility objectives related to competition and consumer protection policy can be achieved fully by performing the complex range of activities aimed at one purpose: assuring the same high level of consumer and competition protection in Poland as in the EU-15.

Bearing in mind that the aims of competition and consumer protection are wide by their nature, all objectives proposed in projects within TF programme reflect the OCCP needs that are most relevant and justifiable for EU support. It has to be stressed that activities planned in Transition Facility 2006 are complementary to the previous ones carried out within relevant Phare and TF 2004 and 2005 projects.

Phare 2000, PL0004.03 Competition and consumer protection: the main focus of the project consisted in creating market surveillance system consistent with the EU models, in its antitrust part the project envisaged legal assistance in drafting secondary legislation and in improving existing enforcement procedures, as well as improvement ofprofessional skills of the OCCP staff.

Phare 2001, PL0102.05 Competition policy and consumer protection: addressed to competition and consumer protection issues with additional component dedicated to state aid issues (Technical Assistance) and in its main part is a follow-up of Phare 2000. Mainly the project focuses on strengthening of consumer awareness in Poland (grant support to consumer NGOs), on promoting consumers interests and on improving professional skills of OCCP and TI staff as well as consumer advocates at the base of German and Austrian experience (twinning component,ref. no. PL/IB/2001/EC/08).

Phare 2001, PL0101.05 Flexible reserve. Support to the integration process. Twinning light (PL01/IB/EC09TL) – Competencies of judiciary in application of the EC competition rules:this project was designed to accustom the judiciary with the practice and experience gathered by the MS national courts in applying the EC competition law.

Phare 2001, Project PL 0101.15.10: service contract for Support to the integration process. Training courses on state aid issues for the Office for Competition and Consumer Protection(State Fund for Rehabilitation of Disabled Persons (PFRON), enterprises of protected work, selected groups of entrepreneurs in sensitive sectors): the trainings had nationwide reach and took place in sixteen voivodeships of Poland.

Phare 2002, PL2002/000-605.02.01 Market Surveillance – the project was focused on reinforcing the existing market surveillance technical infrastructure and on improving Polish public administration qualifications and skills in the field of New Approach Directives (five investments’ contracts for market surveillance bodies and one Technical Assistance contract).

Phare 2003, PL2003/004-379/01.10 Strengthening the Consumer Protection Policy Themain goals of this project were: effective protection of consumer rights and interests by OCCP, consumer associations, consumer ombudsmen and conciliation courts, and raising awareness of consumer rights. The main actions to achieve these goals included strengthening of relevant mechanisms (Technical Assistance) and equipment (Investment component – purchase of IT equipment) as well as education and information activities (contracts for information/education campaign, training courses for OCCP officials and consumer ombudsmen).

Transition Facility 2004, Project PL2004/016-829.02.03 Competition Protection: the main objectives of this project were to ensure an efficient and proper application of the EU competition rules and procedures and to enhance competition culture and market players’ awareness of competition rules via 3 contracts:Twinning(i.a. trainings for the case handlers form the OCCP, theoretical and practical trainings for judges, awareness raising conferences) and two TA contracts. i.e TA1 expertises/analyses (resulting in strengthening the OCCP knowledge (case-handlers) and capacities) and TA 2 –raising awareness/publications

Transition Facility 2004, Project PL2004/016-829.02.04 Consumer protection system – the project focused on strengthening professional competencies of consumer protection executives (OCCP, Trade Inspection and ombudsmen) and representatives of consumer NGOs as well as on strengthening the conciliation courts’ arbiters’ professional skills. The other main goals of this project were: enhancing the involvement and the contribution of consumer associations to consumer protection system, providing reliable market surveillance and product safety data and information, increasing the level of consumers’ and businesses’ awareness of their rights and responsibilities as well as promoting consumer interests and rights.

The proposed project in its competition part is focused on the further and more detailed acquisition of practical experience of the OCCP staff, especially its branch offices via trainings on selected competition topics (i.e. case studies analysis, workshops, MS experts’ support for the OCCP case handlers regarding the most complex and difficult markets).

In its consumer protection part the project is focused on elaborating four analyses/expertises and carrying out practical trainings for the OCCP (e.g. on practical experiences of other MS regarding tendencies of the new jurisdiction of the ECJ in relation to consumer law), judges (to assure the enforcement of law in scope of consumer protection), and business and media representatives (training on binding regulations and the most important consumer problems related to business responsibilities);

2. DESCRIPTION OF THE ASSIGNMENT

2.1 BENEFICIARIES:

• Office of Competition and Consumer Protection, HQ in Warsaw and Branch Offices in Gdańsk, Kraków, Katowice, Łódź, Lublin, Bydgoszcz, Poznań, Wrocław and Warsaw.
• Businessand media representatives (i.a. chambers of commerce and associations of Polish entrepreneurs from different sectors and their members; journalistsinterested in consumer protection issues)
• Judges from Common Courts and the Competition and Consumer Protection Court

Project Leader: Ms Aleksandra Mączyńska, Deputy Director, Department of International Relations and Communications, Office of Competition and Consumer Protection - Tel: +48 (22) 55 60 167, Fax: +48 (22) 827 08 43, e-mail:

Contact person:

Ms Magdalena Lechman, Expert, Department of International Relations and Communications, Office of Competition and Consumer Protection - Tel: +48 (22) 55 60 406, Fax: +48 (22) 827 08 43, e-mail:

2.2 PROJECT COORDINATION

For the purpose of efficient project coordination, the Steering Committee will be established by representatives of the Office of Competition and Consumer Protection, the Twinning Light partner, as well as the representatives of the OCEI and CFCU.

Both project partners shall be responsible for holding a meeting of the Steering Committee.

The Steering Committee will meet at least twice in order to discuss and approve reports presented by the project partners and decide about the schedule of training and achievement of project objectives.

2.3 OBJECTIVES

Global objective:

• Ensuring the same high level of consumer and competition protection activities in Poland as in the EU-15.

Specific objectives:

• providing the competition and consumer protection professionals with tailored training and expertise on detailed aspects of application of European law and procedures (practice and expertises)
• providing business and media representativeswith necessary knowledge on consumer rights and business and media responsibilities within the Internal Market
• providing judges with training on the enforcement of law in the scope of consumer protection

2.4 BUDGET

€M / Transition Facility support / Co-financing / Total cost
(TF plus co-financing)
Investment
Support / Institution
Building / Total TF (=I+IB) / National Public Funds (*)
Contract 1 Twinning light / 0 / 0.22 / 0.22 / 0.02 / 0.24

2.5 REQUESTED SERVICES

COMPONENT A - Consumer protection:

This component is focused on the further and more detailed acquisition of practical experience of the OCCP staff dealing with consumer protection issues via practical trainings on selected topics and three analyses. There are also two awareness raising events for business and media representatives to be carried out.

EXPECTED RESULTS:

• ca. 5 trainings on consumer protection issues for the OCCP staff carried out
• ca. 18 OCCP employees trained
• training materials on consumer protection issues produced and distributed among participants of each training;
• 4 analyses produced (translated into Polish)
• 2 awareness rising events (training conferences) for business and media representatives organized
• c.a. 200 business and media representatives informed about binding regulations of theconsumer law and most important consumer problems related to business responsibilities;
• min 200 copies of publication (containing FAQ, review of jurisdiction made by the twinning experts and resulting from the training conducted) published - max 200 pageseach.

Activity A1