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Biedronka Faces Over 570 Million PLN Fine for Collusion

The President of UOKiK has imposed fines exceeding 570 million PLN on Jeronimo Martins, the owner of Biedronka, along with 29 transport companies and eight individuals, according to an official announcement. The fines are substantial, with Jeronimo Martins facing a penalty of over 520 million PLN and the remaining firms and individuals required to pay an additional 50 million PLN. Some transport companies could incur fines exceeding 300,000 PLN per person.

The issue stems from practices among transport companies serving Biedronka’s distribution centers. According to UOKiK, drivers employed there faced restrictions in changing employers, as hiring decisions were influenced by prior employment rather than qualifications. This situation resulted from a collusion between Jeronimo Martins Polska and the collaborating transport firms, which lasted from June 2017 until at least February 2024, when UOKiK conducted a raid.

In simpler terms, transport companies servicing Biedronka imposed an informal ban on “poaching” drivers from each other. This limited employees’ ability to negotiate better wages, thereby lowering operational costs for the firms and subsequently allowing for cheaper services to Biedronka.

“Employees have the right to seek better pay and working conditions. The collusion that deprives workers of this right undermines fundamental principles of fair competition. Such practices must be eradicated from the market,” stated UOKiK President Tomasz Chróstny.

Drivers wishing to switch jobs from these companies had to obtain approval from their current employer. Without this consent, they faced restrictions that prevented them from working at another center for a certain period, known as the exclusion period, which could last several months depending on the distribution center.

Furthermore, UOKiK confirmed that Jeronimo Martins was aware of and participated in these practices. Due to the company’s size, it received the most severe penalty, with UOKiK demanding payment of over 525 million PLN. “Jeronimo Martins Polska was the organizer of the collusion, enforced agreed-upon conditions, and facilitated information exchange among carriers. It also decided who could access the distribution center and restricted drivers who changed jobs against the agreements between carriers,” UOKiK emphasized.

The other firms involved in the collusion received lighter penalties. In total, 28 firms and eight entrepreneurs must pay over 50 million PLN, averaging nearly 2 million PLN per company, although some transporters received fines of 4 to 6 million PLN, with individual penalties reaching 300,000 PLN each.

Ashley Davis

I’m Ashley Davis as an editor, I’m committed to upholding the highest standards of integrity and accuracy in every piece we publish. My work is driven by curiosity, a passion for truth, and a belief that journalism plays a crucial role in shaping public discourse. I strive to tell stories that not only inform but also inspire action and conversation.

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