Dahua Fined ~$5.5M For Anti-Competitive Practices in Poland

Published Feb 12, 2024 13:50 PM

While Dahua has been banned in numerous locations, this is the first major fine publicly disclosed against the company.

IPVM Image

This report examines the determination against Dahua, relevant Polish and US laws, and Dahua's response to IPVM.

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***** **** **** **** ** ** "founded **** ************ *** *********," *** its ******** ********* **** **** ***** investigation ** ********* ****** *** *****, with *** ******* ***** ** **** falsified ********** **** ******* ** ***** Korea *** ******* ** ***-******* ** Brazil. ***, ****** *********** (*****) **** determined **** ***** ****** ******* ** price ********* *** ****-*********** ****** *******.

*********** ***** **** ***** ****** *** colluding **** *** ************ ** ******* prices, ********* *** ****** ****** ************ could **** ******** *** *** *** maximum ********* **** ***** *****. ** preventing ************ **** ****** ** ***-******* one ******* ** ******** ***** ******, Dahua *********** *** ****** *** ****** certainly **** ******. **** ** ***** as ******** ***** ****** *** ** prohibited ***** ****** **** *** *** US ******* ********* ***.

*****'* ****** ********* *** *** *** practice ** ****** “******* **********” ** the ***** *********** ** ***** ** a “*****-****** ****,” **** *** ****** being **** ********* "***** **** *** the ***** *********** **** ********* **** with ** ***** *****, **** ** another *** ******* *** **** ** offer * **** ********* ********.” **** violated ****** **** ** ****-*********** ****** sharing.

***** *** ****** * ******** **** against ***** (********** ** ~$*.* ******* USD). ***** ****** *** **** ~$*.** million ** ***** ****** ** **** and ~$*.** ******* ** ****. ****** to *** ** ******, *** **** translates ****** ** ~$** ** ~$*** million (******’* ******* ** ~*** ******* than *** **'*, *** *** ********** ~9x *******) - ***** ******** *** a ***** ******** **** ************, *** very *********** ***** ***** ******’* **********.

***** **** **** **** **** ** appeal.

**********

*** ****** ****** ** *********** *** Consumer ********** (*****)***** ************* ***** ****** ** ******** ********** **** ** *** ******** in ****-*********** ********* **** * ** its ************,*****,***** ********,******,***** – ****, *************.

****** *** *************,***** *** ***** *** ***,***, ** *** ~$***,***, *** "********* [a] ******." ***** **** ******* ***** Poland **** ******* ****** ** * September **** ****** ** *** *******'* premises, *** ********** **** ** *** tell *** ** ***** **********. ******** ********** **** *** **** *** so *******, ***********:

*** ******** ******, ***** ** ******* in *** ****** ** ****** ******** materials ** ********** ********** ******* *************. This ***** **** ** *** ************ of ********* ********

***** ********* *** ************* ** ******* 11, ****,*********** **** ***** *** *** * distributors *** ******* ** ***** ********* and ****-*********** ****** *******.

Dahua ******** **** ************ ** *** ******

***** ********* ***** ***, ***** ****, ******** the ****** ****** ** ***** *** 5 ************ ***** **** ******** *** the ******* ********* **** ***** *****. "Price ****** *** **** **** ***** place" ******* **********, ***** ****, **** Dahua ****** *** * ************ ** "set ****** ******" *** ********** ********. According ** *****, ***** "********* [*** distributors'] **********," *** *** ************ ********* one *******'*, **** ************ ****** ***** "to ********* ** *** ** **** did *** ******." *** ****** *********** prevented *** ************ **** ****** ** out-compete *** ******* ** ******** ***** prices, ******* **** ****** ******* *********' wallets.

***** ********** **** *****'* ******* *********** price *********, ***** ** ********** ***** Article *(*)(*) ** ******'**** ** *********** *** ******** **********:

********** ***** **** ** ***** ****** or ****** ***********, *********** ** *** other ************ ** *********** ** *** relevant ****** ***** ** **********, ** particular ***** ********** **: ********* ******* undertakings ******** * ******, ** ** those ************ *** *** *********** ***** the ****** *********, ** *** ***** and ********** ** **** ** ** proposed,particularly ** ******* *** ***** ** ***** *** *** *****. [emphasis added]

** *****'* ******* *** ***** ***** in *** **, **** ***** ****** be *********** ********** ***** ******- * ****** **** "******** ******* of *** ****** ***** [********] ** raise, ***** ** ********* ******," ***** can ******* "************* ** * ******* forc[ing] *** ********* ** **** *** product ** * ************* ****** *****."

**** ******* *** ******* ** *** US ***** ********** ********* *** § *.

UOKiK **** ***** ****-*********** ****** *******

***** **** ********** **** ***** *** taken ******** ** ***** *** ************ from ********* **** *** ******* *** large *****.

********* ** *****, ***** ***** **** "so-called ******* **********" *** "****** ********[*]" to *** ***** *********** ** ****** them ** ******** “*****-****** ****[*].” *** effect, ***** ****, *** **** ********* "could **** *** *** ***** *********** that ********* **** **** ** ***** first, **** ** ******* *** ******* and **** ** ***** * **** favorable ********.” ** *** ******, "******* distributor ***** *** **** ***** *** same ********, *** *** **** ***********, an ********* ***** ** * *********** price." **** ****** ********* ***** **** customers ***** ** ****** ****** ******.

***** ********** **** *** ******* *********** anti-competitive ****** *******, ***** ** ******* in ****** ***** ******* *(*)(*) ** the*** ** *********** *** ******** **********:

********** ***** **** ** ***** ****** or ****** ***********, *********** ** *** other ************ ** *********** ** *** relevant ****** ***** ** **********, ** particular ***** ********** **:sharing ******* ** **** ** ********. [emphasis added]

**** ***** *** **** * ****** US ********* *** ******'* ***. *****, under *.*. ********* ***, ******* ** not **** ** ** ********** ********** to ** ********** **********. *** **** principle ** ** ******* ****-*********** ********, regardless ** ******* *** ******** ** explicitly ********.

*****'* ******* **** **** ****** ****-***********. The *** ***** ********* **, ***** prevented ************ **** ********* **** *** another *** ***** ***** ** * way **** **** ********* **** ****** the ****** ** ********* "**** ********* proposal[s]."

UOKiK ****** ~$*.** **** ******* *****, ***** ***** ~$*.**

***** ******* * *** **.** ******* on *****, ***** ******** ** *** ~$5.5 *******. *** * ************ **** fines ******* **** *** ***,*** (**********) to *** *.* ******* (******) - which ***** *** ** *** ~$***,*** to ~$*.** *******. *****'* ******* ******* for ******,***** ***********, ***** ** ********** **** ** PLN ***,*** (*** ~$**,***).

************, *** ***** ***** *** ** million, ** *** ~$*.* *******.

*** ******** ******* ***** ** ***** significant. ******'* ******* ** ~*** ******* than *** **'*, *** *** ********** ~9x *******. (** ** ****, ******'* GDP ****** $***.** *******, *** *** ************.* ******* ******. *** ** ******* ** ***** $**.** **************.* ******* ******, ************.) **, ****** ** *** US ******, *** **** ******* ***** comes *** ****** ** *** $** - $*** *******.

**** ** ***** ***** *** * niche ******** **** ************. *** *******, the*** ****** * $*.** ******* **** against ******** ******** ** ******* ******* ************* ********* - * figure **** *** **** **** ****** because ******** ****'* ******** **** * 2014 ***** *****.

*** **** ** **** ****** ***********, given ***** ******'* **********. ***** *** just*** *.* ******* ** ***** ****** in **** *** *** *.* ******* in ***** ****** ** ****, ***** ***** *** ** ~$*.** million *** ~$*.** *******, ************. **** means **** *****'* ~$*.* ******* **** is *.** ****** **** *****'* **** gross ******.

IPVM Image

Dahua *** ********, ****** ** ** * "******** ******* **** ************ *** *********"

** ******** ** * ******* *** comment, ***** **** ** *** ******** the "******** *** ***************" ** *****'* ruling. ***** **** **** ** "******[*] to ** *** ****** ****... ** every ****** ** *** ******** **********" and **** ** ** * "******** founded **** ************ *** *********":

***** ********** ****** ** ************ ** the ****** ** *** ****** ****** of *********** *** ******** ********** ******** on **/**/**** ***has ******* ***** *** ********* **** *** ********** *** ********* *** ******** ** ***** ** *** ***** ** ********* *** ******** *** *************** ** *** ********. The decision follows an investigation during which Dahua has actively engaged and cooperated with all relevant bodies.

** *business ******* **** ************ *** *********, we dispute the findings of the investigation. Dahua ****** ********* ** ****** ** ** *** ****** ****, ***********, *** ********* ** ***** ****** ** *** ******** **********.

** **** *** ************ **** *** Polish ********* *** ***-***** ** *** highest ****** *** ****** ********* ** delivering ********-******* ******** *** ********** ********* to *** ******. [******** *****]

[**** *** *** **** **** ** retrieve ******* ** *****'* ******, ***** may *** ** ******** *********. ** will ****** **** ****** ** ** obtain ****** ** *** ******.]

Comments (6)
UM
Undisclosed Manufacturer #1
Feb 12, 2024

******* ******* ** ******* ******** ****** using ********* ******** *********….

RL
Rodrigo Lima
Feb 12, 2024

***********

UM
Undisclosed Manufacturer #2
Feb 12, 2024

* **** ***** ******** *** ******* registration ******** ********* ** * ***** number ** ************* ** ****** ** regards *** ******* ********* ***********.

UM
Undisclosed Manufacturer #3
Feb 13, 2024

***** ***** **** "****** ********[*]" ** the ***** *********** ** ****** **** of ******** “*****-****** ****[*].” ... " That ****** ********* ***** **** ********* ended ** ****** ****** ******.

**** * ******, *** ***** ********* ended ** ****** ****** ****** ** Dahua ******** "****** *********" *** ***** "large-amount *****"? **** **** **** ********* will *** ** ****** **** ** Dahua **** *** ******* "****** *********"? Sounds * *** *************, ***...

UM
Undisclosed Manufacturer #4
Feb 13, 2024

*** ******* ************ *** **** ** the ***** ***** ** ***** ** to *****. ** ******* ***** **** could ***** ****** ******* *** ******, they ******'* *** *** ******* ************. They ******'* **** * ****** *********** system ***** **** *** ******* ************, thereby ******* *** ********. *** **** makes *** ****, **** ***** ****** off **** ***** ******* **** **** more $, *** ********** ******* *** customer.

(1)
UD
Undisclosed Distributor #5
Feb 14, 2024

** *** ******* ************ *****, * still ***'* ***** *** *** *** discount ** ******* *** ********.

******** ********** **** ** ****, ******* the ********** *********, *** ****** ***** from ***** * ****** ** *** same ** ***** *. **** ***** 2 ***** ** *** ****** ** win *** ******* **** *** ****** price, *** ********** ******** **** ** gives ***** * **** **** ** win *** ******* ****. *** *** argue **** ** ****** ** ***** 2 *** *****'* *** ******** *** a ****** ***** **** ***** *?

****** *** *** ****** ******* ***** 2 **** **** **** ******** ****** and **** ***** ** ******** ** uphill ******, **** **** ****** **** up *** ********* *** ******** *** able ** *** *********** ******? *** for ***** * ** **** *** existence ** ******* ***, **** ***** only ** **** ** **** **** applying ** **. ** ***** **** they ***** ******* **** *** ***** to *** ******** * ***** *****?