Chemeko-System has been fined approximately PLN 400,000 (c. eur 100,000) for abusing a dominant position in waste treatment and storage market.

Chemeko-System is based in Wroclaw and holds the contract for waste treatment and storage in Dolnoslaskie voivedeship (SW Poland), as it owns the only communal waste reprocessing installation there.

According to UOKiK, Chemeko-System from 1 January 2013, it increased its prices by c. 115 %, whereas prices charged by similar operators in other parts of Poland have been over 40% lower. As it looks that the company holds a monopoly, UOKiK considered such excessive prices to be an abuse of a dominant position, fined the company and ordered it to cease all prohibited activities immediately.

This is UOKiK’s first decision since the new waste management law came into force, which requires local governments to organise public procurement tenders for waste collection and treatment and to have awarded contracts by 1 July 2013. From the outset, UOKiK has criticised the law for replacing effective competition with a monopoly and thereby bringing about an increase in waste collection and disposal charges.

UOKiK also announced that it is currently conducting 27 similar proceedings to establish whether antimonopoly provisions were also breached in other cities.

The decision is not final as Chemeko-System has the right of appeal to the Court of Competition and Consumer Protection.