PGNiG loses one court case, wins another against EC

Polish gas company PGNiG has failed to overturn in the General Court of the EU a deal between the EU and Gazprom that allowed the Russian supplier to settle a long-standing antitrust case without paying a fine, the court said on February 2. But it has also won another smaller case that will require the European Commission (EC) to reconsider Gazprom's alleged anti-competitive behaviour in the Polish market.

Under its settlement deal with the EU, Gazprom agreed to reform its sales business in Europe, offering buyers more flexible pricing and other supply terms. In return it avoided paying a fine that would have amounted to 10% of its annual turnover.

Poland and some other east European countries argued at the time that the agreement let Gazprom off the hook too easily. PGNiG contested the EC's deal in the EU's general court, but the court said on February 2 that it had dismissed the company's challenge.

PGNiG scored a smaller victory, however, as the same court has annulled the EC's 2017 decision to reject its complaint about Gazprom's alleged market abuse in Poland. The EC will now have to investigate the case.

Responding to the second judgement, PGNiG called on the EC to "take decisive action against Gazprom's violations of competition law."

"It should be stressed that most of Gazprom's practices complained against by PGNiG have continued to this day and should be subject to an in-depth investigation by the commission because of their potential effect on the European gas market," PGNiG CEO Pawel Majewski said.