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President of UOKiK initiated 51 proceedings concering payment backlogs

President of UOKiK initiated 51 proceedings concering payment backlogs

Dodano: 2020-07-21
Publikator: Office of Competition and Consumer Protection

In June of 2020 the President of the Office of Competition and Consumer Protection (UOKiK) has initiated proceedings concerning payment backlogs with respect to 51 large enterprises. The purpose of these actions is to improve financial liquidity of Polish enterprises, especially micro, small and medium-sized enterprises.

Companie were selected after analysing information on the likelihood of delays in the first quarter of 2020, obtained on 20 May 2020 from the National Tax Administration (KAS). Entities selected to be the subject of proceedings include large companies operating within the territory of Poland, including confectionery, white goods or clothing manufacturers or logistics companies.

‘The initiation of proceedings was preceded by laborious analytical work. We have identified market areas where the risk of occurrence of payment backlogs is the highest. Based on data obtained from the National Tax Administration, we have examined nearly a million transactions between nearly 100 thousand enterprises, which allowed us to narrow it down to 51 entities suspected to have the highest amount of outstanding payments,’ said Tomasz Chróstny, the President of UOKiK.

“According to the legislative impact assessment, in 2020 it was planned to implement 50 anti-backlog proceedings. Our goal for the next six months is to at least triple that number by efficiently implementing analytical procedures in the course of proceedings. The fairness and timeliness of settlements between trading partners is the basic element of healthy market economy, and UOKiK’s role is to put greater pressure on entities who fail to settle their financial obligations towards trading partners in a timely manner, so as to prevent the loss of liquidity by vendors,” added Tomasz Chróstny.

New competencies of the President of UOKiK now include conducting proceedings concerning excessive delays in the settlement of financial obligations. The President of UOKiK may intervene, if the sum of outstanding amounts owed by an enterprise within 3 consecutive months is at least PLN 5 million (as of 2022 this amount will change to PLN 2 million). This applies to arrears under agreements concluded after 1 January 2020 or earlier, if the payment became due in 2020.

“The purpose of new regulations and our actions is to improve the financial liquidity of Polish companies. It’s a prerequisite for the security of enterprises and their employees. That’s why I consider the fight against payment delays as one of the priorities of the Office of Competition and Consumer Protection,” said Tomasz Chróstny, President of UOKiK.

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