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Thursday, December 29, 2022

Penalty WOKiK. Allegro reacts

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Allegro disagrees with the decision of the Office of Competition and Consumer Protection to impose a huge fine on the company.

On Thursday, the Office for Competition and Consumer Protection announced the imposition of fines on Allegro totaling PLN 210 million. According to the head of UOKiK, the company violated the rules of competition.

In the afternoon, Allegro issued a statement in which it said it did not agree with the decision and intended to appeal it.

“Once a decision has been made, Allegro PL will review the validity of the decision and take steps to reverse it. Allegro PL does not agree with this decision.

“The vast majority, that is, 99 percent, of sales on the Allegro PL platform are made by 3Ps, and 1P is responsible for only the remaining 1%. sales,” the company adds, responding to accusations that it is prioritizing its own store at the expense of smaller retailers.

trading giant

Allegro is the largest Polish online trading platform. The position of the giant forces the store owners to conduct their business through it.

“For some entrepreneurs, especially small ones, the opportunity to sell on the allegro.pl portal may be the only way to reach a wide range of customers. In relations with sellers operating on the allegro.pl platform, Allegro performs a dual function. On the one hand, it is an intermediary platform in e-commerce, and on the other hand, it competes on this platform with other sellers, in particular through its own online store - Official Allegro Store.

According to the inspectors of the UOKiK, Allegro illegally used its dominant position.

Contracts with clients

The second decision taken concerns the principles of cooperation between Allegro and consumers. The Authority has reviewed the rules used by people who have created an account to purchase through the platform and users of “Allegro Smart!” - the possibility of free delivery of purchased goods.

In the current regulation, the platform stipulated that it would be able to change the conditions, for example, in the event of technological and functional changes or economic and market conditions for changing contracts, without a clear indication of the scope and reasons for their introduction.

Source: Wprost

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