Friday, 03 February 2017

Decision 639/2017

Decision on the complaints put forth against the company ROMA PIZZA S.A. regarding potential violations of Articles 1 and 3 of the Greek Competition Act 3959/2011 and/or Articles 1,2 and 2a of Greek Law 703/1977 as well as Articles 101 and 102 TFEU, in the fast food services market.

Decision 639/2017
File (PDF) Decision 639/2017
Date of Publication of Decision February 3rd, 2017
Issue Number of Government Bulletin  
Relevant Market Fast Food Services
Proceedings Collusion, Abuse of Dominant Position
Legal Framework Article 25 par. 6 of the Greek Competition Act 3959/2011
Decision Adoption of Commitments
Complainants I.M., I.S., K.M., P.D., H.L. (K.L.), N.K., M.K.
Respondent ROMA PIZZA S.A.
Summary of Decision

The Hellenic Competition Commission, in plenary session, unanimously accepted the commitments proposed by ROMA PIZZA in its bid to cease a potential violation of competition laws in the market for fast food services. The vertical practices which were examined and the commitments which were taken on by the company concern the conditions of the franchise contracts which the company signs as licensor with the members of its network, as well as the practices which are adopted in its transactional relationship with its licensees.

In particular, ROMA PIZZA committed to the following:

  • With regards to the matter of territorial protection, the contracts will not include a clause for the restriction of active sales of members of the network to other regions or teams of customers. Additionally, even though there was no evidence suggesting restriction of active or inactive sales through the use of the telephone centre for taking orders or through the internet, it is made clear that the licensees, if they wish to, have the right to establish and use their own websites, and to carry out online sales of their products through third party websites, on the condition that they abide by quality standards in order to maintain the uniform look of the network.
  • With regards to the potential restriction of mutual commissions within the network, the licensor assumes the responsibility of clarifying its contracts, so it is made clear that each licensee of the network can supply any other licensee of the network if they wish to do so, and clarifies the remit of the non-competition clause after the termination of the contract.
  • With regards to the potential promotion of a particular badge, clarifies the terms and conditions under which the promotion shall be deemed necessary for the maintenance of quality, and ensure, therefore, that there is justification under Article 1 of the Greek Competition Act 3959/2011.
  • With regards to the potential resale price maintenance, even though no evidence points to the relevant contractual restriction, nor the indirect restriction through the use of software, it is clarified that the licensee may sell at prices below the level recommended by the licensor for maximum prices with the publication of relevant price lists – brochures, or to, through the use of the same means or through their website, proceed with relevant discounts particular to their shop and to partake in certain offers of the licensor of limited time availability.

The decision to accept the commitments proposed by ROMA PIZZA does not constitute a final decision with regards to the finding or not of a violation, whilst the failure to comply with the agreed upon comitments shall enable the Commission to impose on the company the fine which the law provides for.

The Chamber of the Commission rejected the rest of the complaints made by the claimants with regards to practices of anticompetitive collusions (Art. 1 of the Greek Competition Act 3959/2011 and Art. 101 TFEU), abuse of dominant position (Art. 2 of the Greek Competition Act 3959/2011 and Art. 2 TFEU) and abuse of relationship of financial dependence (Art. 2a of Greek Law 703/1977 as previously in existence) and concluded that there are no reasons for further action by the Commission with regards to the case in question.

Judicial Means Final. Decision has not been appealed
Decisions by the Court of Appeal of Athens (Administrative Division) -
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