48.5 Proceedings conducted by the President of the Office of Competition and Consumer Protection against PZU Życie

On 1 June 2005, at the request of several petitioners the President of OCCP instituted anti-monopoly proceedings on suspicion of abuse by PZU Życie of its dominant position in the market of employee group insurance, which might have constituted a breach of the provisions of Article 8 of the Act on competition and consumer protection and Article 82 of the Treaty Establishing the European Community. In the decision of 25 October 2007 concluding the aforementioned proceedings, the President of OCCP imposed a fine of PLN 50 million on PZU Życie for hindering access to the competitors’ offers.

The Management Board of PZU Życie disagreed both with the findings and legal arguments presented in the decision. According to the Management Board of PZU Życie, the decision issued did not take into account all the evidence and the legal qualification was incorrect, as a result of which it was assumed wrongly that the market position of PZU Życie was dominant. PZU Życie appealed against the decision to the Court of Competition and Consumer Protection, presenting 38 substantive and formal charges with respect to the decision issued by the President of the OCCP.

After many years of proceedings, on 30 September 2015 PZU Życie paid the imposed fee in the amount of PLN 50 million and the costs it was charged with. On 18 March 2016, PZU Życie to the Supreme Court filed a cassation appeal, to which it received a response of President of Office of Competition and Consumer Protection on 10 May 2016. On 24 May 2016, PZU Życie filed its reply to the response of the President of OCCP.

Due to the penalty paid by PZU Życie, as at both 31 December 2016 and 31 December 2015, there was no need to maintain any additional provisions related to the matter.