PUBLIC PROSECUTOR, ATHENS COURT OF FIRST INSTANCE

INDICTMENT

ATHENS COURT OF FIRST INSTANCE, SEPTEMBER 2011

PRAXIS:
Article 2, 29 para.1, 30 para.1 N.703/77 together and repeatedly

Accused:

  1. Panayiotis Efstathiadis
  2. Athanasios Eftstathiadis
  3. Susanna Eftstathiadis
  4. The legal representatives of the publisher OXFORD UNIVERSITY PRESS (OUP)
  5. Agapia Tsakiri
  6. Ioannis Spyropoulos
  7. Vasileios Gaitanos

The above named are accused as being responsible for:-

In Athens for the period from 1/l/2007 to 31/08/2010, having made a joint decision to act together, various and repeated actions which constitute the abusive and illegal exploitation of their dominant position in the market over the entirety of Greek territory through:-

(a) direct or indirect coercion to practise the price fixing of the purchase price and/or selling price of books and other merchandise or imposing other unreasonable terms of trade

(b) the restriction of production or consumption to the disadvantage of consumers

(c) the application of unequal terms for equal provisions, especially the unjustifiable refusal of sale purchase or other transaction in such a way that other companies are put at competitive disadvantage and

(d) the making of an agreement to the above and additional such provisions between the first three accused in their capacities respectively as (1) Chairman of the Board and shareholder (2) CEO and shareholder (3) member of the Board, Financial Director and shareholder of the company trading as EFTSTATHIADIS GROUP SA, and the fourth accused the legal representatives of the publisher OXFORD UNIVERSITY PRESS (OUP). The fifth, sixth and seventh accused were during respectively the years 2007, 2008 and 2009-10 the legal representatives (CEOs) of OUP (CYPRUS) trading as OXFORD HELLAS, which is a subsidiary of the aforementioned.

The first four accused have a dominant position in Greece in the promotion and distribution of educational foreign language teaching books, since for the aforementioned period they had over 50% market share of the total wholesale trade of educational foreign language teaching books. Together they have taken advantage of their dominant position by making deals for the exclusive distribution of OUP's books whereby they have fixed the books' maximum recommended retail price in Greece.

The first three accused made an agreement for the exclusive wholesale import of OUP's books into Greece whereby OUP offered them a discount of up to 50% on fixed retail prices determined by OUP and whereby they were obliged to resell them at a profit to consumers (other wholesalers, bookshops, students). The fifth, sixth and seventh accused collaborated fully with the parent company in fixing the final retail prices of OUP's books in Greece and they were informing the exclusive wholesaler (Efstathiadis SA) of these prices.

The aforementioned illegal actions had the results of (a) fixing high prices of OUP books in Greece for the purpose of making large profits to the disadvantage of consumers, (b) controlling the books' production, distribution and consumption to the disadvantage of consumers, (c) of diminishing competition and disadvantaging other companies (including FLORAS BOOKSHOPS, MARIA FLORA LTD and EUROBOOK SA) and (d) restricting potential access or survival of new competitors in the relevant market.

Authorities
Violation of articles 1, 14, 16, 17, 18, 26 para.1a, 27, 45, 95, criminal law articles 2, 29 para.1, 30 para.1 law 703/77, replaced by article 1 para.2, law 2296/1995, article 26 law 37/84/2009

Witnesses:
George Floras
Eftstratios Stratigakis

Documents:
The decision of the Competition Committee 452/V/2009
The decision of the Competition Committee 455/V/2009
Competition Committee session minutes dated 28-11-2008
Competition Committee session minutes dated 27-3-2009
Financial statements of Efstathiadis Group SA for the years 1998-2009
Memorandum of Efstathiadis SA dated 3-6-2008 pages 37-40

Click for Akme report Adrasteia Rising, the September 2011 Indictment Pdf, Greek, the November 2011 Summons Pdf, Greek, and for more detail and a chronology of George Floras' campaign.


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