UOKIK BRANCHES – HOUSING COOPERATIVES
Limiting consumer choice of cable TV operator, offering services on more favorable
terms - this may be the effect of breaking antitrust laws by housing cooperatives. The
recent decisions issued by the President of UOKiK remind us about it
[Warsaw, 23 September 2011] As well as providing apartments for their members, housing
cooperatives conduct business activities and are governed by the law on equal terms with
other undertakings, bearing the responsibility for violations of antitrust laws. The example
of practices of the housing cooperatives challenged by the Office involves abusing the
dominant position in the market of housing resources provision to telecommunications
operators.
Opportunity to provide services in buildings managed by the housing cooperative depends
solely on its consent. When the housing cooperative is using its privileged position to
restrict competition (e.g. through unjustified ban on the provision of services for the
selected businesses), we are dealing with illegal behaviour. The effects of such practices
are detrimental to the entities, for which the housing cooperatives hinder service
provision. In addition, residents have a limited choice of selecting the optimal offer of
cable TV and Internet operators.
This year, the President of UOKiK issued four decisions confirming violations of antitrust
laws
by
housing
cooperatives.
Three,
issued
recently,
concern
limiting
telecommunications companies access to the buildings of the Housing Cooperative
“Nasza Praca” in Czestochowa, Housing Cooperative in Lezajsk, and Housing
Cooperative “Grunwald” in Poznan.
Since 2005, one of Czestochowa undertakings unsuccessfully tries to obtain permission of
the Housing Cooperative “Nasza Praca” for installation of telecommunications equipment
in its buildings, including fiber optics - by which residents would enjoy access to the
Internet. Proceedings of UOKiK showed that the Częstochowa cooperative obliged the
operator to meet a series of conditions that had no technical justification. The cooperative
has also adopted a resolution requiring its members and authorities to categorically object
to sharing their property to foreign providers of telecommunications services. In this way,
the Częstochowa cooperative, which itself provides telecommunications services,
unlawfully restricted the access of competitors and also deprived its tenants of a wider
choice of telecommunications service providers.
The President of UOKiK ordered the Housing Cooperative Nasza Praca in Czestochowa
to cease illegal practices and imposed a penalty of PLN 148,521. The decision is not
binding, the cooperative has appealed to the court.
Another decision concerns the Housing Cooperative in Lezajsk, which demanded from the
undertakings a fee of PLN million for providing access to its premises for the purpose of
building a fiber network. Paying of the amount requested by the Cooperative was a
significant barrier to new operators. In the opinion of the Office, establishing grossly high
fees, in fact, was to prevent the undertakings from launching services that would compete
with cable TV owned by the cooperative.
The President of UOKiK imposed a penalty of PLN 23,691 on the Housing Cooperative in
Lezajsk. The decision is not binding, the cooperative appealed to the Court of Competition
and Consumer Protection.
Unlawful practices were also applied by Housing Cooperative Grunwald in Poznan.
Proceedings of UOKiK proved that the cooperative required the operators applying for
access to the property to first exhaust the possibility to place the network in the existing
ducts of companies, who already operated on its territory. The Office concluded that this
condition is not justified in the current legislation, and its acceptance deprives the
operator of the possibility of real competition for customers, because it forces it to incur
fees for using the network of other company and consequently - increases the prices of
services offered to consumers. The cooperative also demanded from the new
telecommunications operators to install their equipment so that it could also be used by
other undertakings. The cooperative, however, did not inform them about the required
parameters of these devices. Thus new operators were forced to perform unnecessary
investments, the costs of which could not be determined. As a result, they could resign
from the provision of services to the residents of SM Grunwald finding it very unprofitable.
According to the Office, the cooperative restricted the competition by hindering new
operators starting the provision of telecommunications services.
The President of UOKiK committed SM Grunwald to discontinue the unlawful practices
and to inform about it the operators who have made requests for access to the
property of the Cooperative for the provision of telecommunications services. The
decision is final.
Practical information for the undertakings, municipalities and cooperatives regarding the
antitrust regulations can be found on the Office’s website, in the competition protection
section. There are also publications available about the competition protection, which can
be ordered free of charge by e-mail - [email protected] or by phone +48 22 55
60 502 or downloaded from the website.
Additional information for the media
UOKiK Branch Office in Poznań
tel.: + 48 61 852 77 50
e-mail: [email protected]
Małgorzata Cieloch, Spokesperson for UOKiK
Department of International Relations and
Communication
Pl. Powstańców Warszawy 1, 00-950 Warszawa
Tel. +48 22 827 28 92, 55 60 314
UOKiK Branch Office in Krakow
tel.: + 48 12 422 96 16
e-mail: [email protected]
UOKiK Branch Office in Katowice
tel.: +48 32 256 46 96
e-mail: [email protected]
Fax +48 22 826 11 86
E-mail [email protected]