The Polish competition authority (UOKiK) has announced additional measures to ban unfair trading practises in the food supply chain. While the EU wide Directive on UTPs is yet to be implemented, Poland already has its national provisions in place. It now plans to significantly expand the list of unfair business practises from four to 17 points. Amongst others, discounts, listing fees and advertising subsidies should also be classified as unlawful. The change in law, which is to be passed in May, is expected to have a negative influence on the profitability of retail.
In addition, large retailers in the country are under pressure because of the many taxes that are imposed on the sector. Also, since the beginning of this year, retailers have had to pay a staggered income tax, and the top 15 food retailers would have to pay the maximum amount. A study by the Warsaw School of Economics estimates that half of the large retailers could be loss-making this year. The legality of the tax is being reviewed by the European Court of Justice.