Poland’s competition authority, UOKiK, has imposed major financial penalties on the Polish subsidiaries of CNH Industrial and Claas, along with selected dealers and individual managers.
According to the regulator, the companies coordinated pricing behavior and divided sales territories inside their official dealer networks. UOKiK concluded that these actions distorted competition and led to higher prices for farmers and agricultural contractors purchasing machinery and spare parts.
€120 Million in Fines for Violations Lasting Over a Decade
The total value of the fines reaches 500 million Polish zloty, equivalent to approximately €120 million. Penalties were imposed on the Polish operations of CNH Industrial and Claas, twelve dealers, and two CNH employees.
UOKiK confirmed that the infringements occurred for at least eleven years, from 2011 to 2023. Under Polish competition law, fines may reach up to 10 percent of a company’s annual turnover, reflecting the seriousness of the violations.
The authority also confirmed that a separate investigation is ongoing involving other major brands, including Fendt, Valtra, and Massey Ferguson.
Dealer Territory Restrictions Limited Customer Choice
Investigators found that the manufacturers’ Polish subsidiaries enforced strict territorial rules within their dealer networks. When farmers or contractors requested quotations from dealers outside their assigned regions, they were either quoted significantly higher prices or refused service altogether.
These restrictions applied not only to new machinery sales but also to spare parts. UOKiK ruled that obliging dealers to reject customers based on location constitutes illegal market division and directly violates Polish competition law.
No Direct Consequences for Other EU Markets
Industry organizations outside Poland have downplayed broader implications. Dutch agricultural machinery association Fedecom stated that similar practices are not present in the Netherlands and that the Polish decision does not affect the Dutch market.
For now, the case remains nationally scoped, though it reinforces wider EU scrutiny of vertical restraints and dealer network control in the machinery sector.
Structural Risk in Closed Dealer Systems
This case highlights a structural risk inherent in tightly controlled dealer networks. While territorial organization is often justified by service quality and dealer investment protection, enforcing customer refusal or coordinated pricing crosses a clear legal boundary.
For farmers, the ruling validates long standing concerns about limited price competition in some regional markets. For manufacturers, it serves as a reminder that internal compliance failures can persist unnoticed for years and result in severe financial and reputational damage once exposed.
About CNH Industrial
CNH Industrial is a global manufacturer of agricultural and construction equipment and the parent company of New Holland, Case IH, and Steyr. The group operates worldwide through extensive dealer networks and is a major player in tractors, combines, and harvesting equipment.
About Claas
Claas is a Germany based agricultural machinery manufacturer best known for its combine harvesters, forage harvesters, and tractors. The company has a strong presence across Europe and traditionally relies on closely structured dealer organizations to support sales and service.
