The Antitrust Authority (AdC) has fined supermarket chains Auchan, Modelo Continente and Pingo Doce, as well as joint alcoholic beverage supplier Active Brands/Gestvinus, €5.6 million for participating in a price-fixing scheme.
The AdC statement states that “Sanctioned three supermarket chains – Auchan, Modelo Continente and Pingo Doce, as well as the joint alcohol supplier Active Brands / Gestvinus and the person in charge of this company for participating in the consumer selling price (PVP) scheme for products from this supplier”.
According to the same note, “an AdC investigation found that participating distribution companies ensured retail price equalization in their supermarkets through contacts established through a common supplier without the need to communicate directly with each other”the regulator said.
“This practice eliminates competition by depriving consumers of the opportunity to choose better prices, but providing a higher level of profitability for the entire distribution chain, including supply chains and supermarkets.”emphasized AdC.
According to the competition, “a fine of 5,665,178 euros was imposed for the present violation”and according to published data, Ative Brands was fined 2.3 million euros, Modelo Continente – 1.4 million euros, Pingo Doce – 1.2 million euros, Auchan – 660 thousand euros, and the responsible person – 5,178 Euro.
AdC recalled that in November 2020 “Issued a Nota de Ilicitude (or indictment) in this case, subsequently enabling all companies and persons responsible to exercise their rights of hearing and defense, which was duly taken into account in the final judgment.”.
Thus, in this case, the competition “We determined that this practice lasted for more than eight years – from 2009 to 2017 – and was aimed at various products from the supplier, such as wines, spirits and liquors / snacks. Major distributor lawsuits heard between 2020 and 2022 included sanctions against six supermarket chains and nine suppliers for anti-competitive “stars and hubs” practices.remembered.
The AdC also recalled that the fines it imposes “is determined by the turnover of sanctioned companies in the affected markets over the years of practice”be the one “according to the Competition Law, fines cannot exceed 10% of the company’s turnover in the year before the decision on sanctions and 10% of the annual remuneration received in the last year of the violation, in the case of individuals”.
By setting these penalties, “AdC takes into account the severity and duration of the infringement, the extent to which companies are involved in the infringement, the economic situation of companies, among other circumstances, in line with international best practice”according to the same note.
Pingo Doce announces it will appeal to the court
Pingo Doce believes that the Competition Authority’s (AdC) fine is “unfair and undeserved” and ensures that “will be challenged in court”according to an official source, in response to Lusa.
“Pingo Doce confirms that it has received another fine decision from the Antimonopoly Office within the previous ones”indicated in the company, adding that “This decision is also unfair and undeserved and therefore, like the previous ones, it will be challenged in the courts in order to restore the truth of the facts”.
“Nothing will stop Pingo Doce from continuing to offer the Portuguese the biggest discounts, best prices and promotional opportunities as it has always done.”stressed the same source.
Auchan ‘completely refutes’ the practice
Auchan said it “completely refutes the actions attributed to it by the Competition Authority” (AdC), which again fined the supermarket chain, adding that it would “take legal action” against the decision.
“Auchan completely refutes the practice attributed to it by the antimonopoly authority in the Final decision as part of the administrative offense process, and will appeal the decision in court, naturally, exercising the rights provided for by the Competition Law,” the company said. in a note sent to Lusa.
The group also ensured that “all training and supervision of its employees are provided internally to avoid any behavior that could lead to a violation of the rules of competition.”
