Polish pallet group accuses Biedronka of monopoly practices

EPAL Polska, an organization representing producers and repairers of "white" pallets, has filed a complaint with the Office of Competition and Consumer Protection (UOKiK) against Jeronimo Martins Dystrybucja and CHEP Polska. EPAL Polska suspects the retail chain of abusing its dominant position and forming an agreement that restricts competition in the wooden pallet market.

According to EPAL Polska, Biedronka has informed its suppliers that as of August 1, 2027, any white europallets delivered with goods will be permanently lost, as the chain will take ownership of them, treating them as "disposable." Only colored pallets belonging to CHEP, LPR, and NDHP pools will be permitted.

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In practice, we are talking about a situation that will primarily benefit CHEP.

"In practice, we are talking about a situation that will primarily benefit CHEP," stated Roman Malicki, CEO of EPAL Polska. He noted that CHEP holds a 40-50% share of the Polish pallet market, while Biedronka controls over 46% of the modern food retail segment in Poland. EPAL Polska fears that given this scale, forcing suppliers to use a specific type of pallet, under penalty of losing them without compensation, could be a violation of competition law.

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The supplier faces a choice: incur additional costs to switch to the colored system or lose pallets with every delivery.

EPAL Polska views the restriction and seizure of white pallets as a financial penalty for non-compliance. "The supplier faces a choice: incur additional costs to switch to the colored system or lose pallets with every delivery," explained Elżbieta Modzelewska-Wąchal, a legal advisor specializing in competition law.

The complaint outlines three potential violations: imposing purchase conditions by forcing suppliers to use specific transport packaging, hindering competition by marginalizing the competing white pallet system, and imposing burdensome contract terms by taking ownership of pallets without compensation. EPAL Polska is also requesting an interim measure to compel Biedronka to accept goods on white pallets until the case is resolved, arguing that the consequences of the new rules could be irreversible. Malicki warned that the bankruptcy of hundreds of pallet manufacturers, the closure of repair facilities, and suppliers switching to closed systems would make returning to the previous state impossible.

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If hundreds of pallet manufacturers go bankrupt, repair facilities close down, and suppliers switch to closed systems, returning to the state before the decision will be unattainable.