53.3 Proceedings conducted by 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 50,384 thousand on PZU Życie for hindering access to the competitors’ offers.

The Management Board of PZU Życie disagrees 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 several years of proceedings, in a ruling of 17 February 2011 the CCCP partly modified the decision in question, at the same time dismissing the appeal lodged by PZU Życie in relation to the amount of penalty. On 6 May 2011, PZU Życie appealed against the decision.

On 9 May 2013, the Appellate Court in Warsaw admitted the charges filed by PZU Życie and reversed the judgment of the CCCP on grounds of nullity of legal proceedings, cancelled the proceedings to the extent that they were null and remanded the matter for a new trial before the CCCP.

As a result of further proceedings, in the judgment of 28 March 2014 the CCCP dismissed the appeal of PZU Życie and adjudged the return of proceeding’s expenses by PZU Życie. On 10 July 2014, PZU Życie appealed against the judgment of the CCCP of 28 March 2014 pertaining to the judgment in its entirety. The court sent a copy of the appeal to the defendant and other participants who submitted a response to the appeal. The files were sent to the Appellate Court in Warsaw. On 2 July 2015, PZU Życie filed a response to the appeal, which was followed by a further exchange of pleadings. The appeal hearing was held on 3 September 2015 and on 17 September 2015 the Appellate Court dismissed PZU Życie's appeal in its entirety and adjudged the return of proceeding’s expenses by PZU Życie. The judgment is final and non-appealable. PZU Życie paid the imposed fee in the amount of PLN 50,384 thousand and the costs it was charged with. PZU Życie received the judgment and the substantiation on 20 January 2016. Currently, PZU Życie is assessing the appropriateness of issuing an appeal. The final date of appealing is 21 March 2016.