“For participation in the Consumer Sales Pricing Scheme (PVP),” the Competition Authority (AdC) “sanctioned five supermarket chains – Auchan, E. Leclerc, Intermarché, Modelo Continente and Pingo Doce – as well as General Supplier Sogrape and two individual managers (director and general manager of Sogrape and head of the business unit Modelo Continente) “, – in a decision announced today in release…
The practice, aimed at “various Sogrape products such as wines from Portuguese brands such as Mateus, Gazela, Casa Ferreirinha, Porto Ferreira, Offley and Sandeman, as well as Jack Daniel’s and Macallan whiskeys and Taittinger champagne”, will run from 2006 to 2017. he considers the Competition.
AdC states that members are responsible for “combining prices at the expense of consumers.” “This practice is harmful to consumers and affects the majority of the Portuguese population,” the organization stresses, “as the business groups involved constitute a significant portion of the nation’s large food distribution market.”
By establishing contacts “through a common supplier, without the need to communicate directly with each other, the participating distribution companies ensure the equalization of retail prices in their supermarkets in a conspiracy equivalent to the cartel, which in competition law terminology is known as the“ hub ”. “-And-spoke”, – adds Competition in communication.
“In December 2020, and recently on November 2 and 17, 2021, AdC has already condemned these supermarket chains and three beverage suppliers – Sociedade Central de Cervejas. [dona da Sagres e Luso], Primedrinks e Super dollar – as well as a supplier of packaged bread and cakes – Bimbo donuts – through the same type of practice, ”contextualizes the organization led by Margarida Matos Rosa.
AdC also recalls that the practice now sanctioned for products marketed by Sogrape “eliminates competition by depriving consumers of better pricing options, providing higher levels of profitability across the entire distribution chain, including suppliers and supermarket chains.”
“As it cannot be ruled out that the behavior under investigation is still ongoing,” after ten years of the combination authorized this Friday, “in its current decision, the AdC demanded an immediate end to the practice” by the groups involved.
Pingo Doce, Sogrape and Modelo-Continente with the largest fines
“The decision on sanctions resulted in a fine of 17.231 million euros” for the six companies involved and two responsible persons of two of them.
The amount is distributed in descending order: 5.5 million euros for the Pingo Doce Distribuição Alimentar (controlled by the Jerónimo Martins group); 4.8 million euros for Sogrape Distribuição; 4.3 million for Modelo-Continente Hipermercados (Sonae group, owner of PÚBLICO); € 1.21 million for ITMP Alimentar (which operates the food retail trade under the Intermarché brand); 1.20 million for Auchan Retail Portugal (from the French Auchan group, which for many years operated in the country under the Jumbo and Pão de Açúcar brands); and € 140,000 for Cooplecnorte (which operates under the French supermarket brand E. Leclerc).
The rest of the fines – 13.5 thousand euros and two thousand euros – were assigned to two unidentified perpetrators.
The currently imposed fine is a consequence of the adoption of the Notice of Illegality (formalization of the charge by AdC) in June 2020, when, according to the organization, it was given “the opportunity for all companies and individuals to exercise their right to be heard and protected, which was duly taken into account in the final decision ”.
Responsible persons – companies and individuals – now targeting the Competition can appeal against the AdC’s decision.
Sogrape will appeal
In response to the announcement of the AdC’s decision, Sogrape said in a statement to the editors that “it considers this condemnation of AdC to be absolutely unfair, incorrect and even incomprehensible, and hopes that it will take place. judicial appeal, the possibility of finding out the facts ”.
He goes on to state that “never in his history has he been accused of any anti-competitive behavior” and that he “even has a strict program agreement and training employees to ensure strict compliance with the rules of antitrust laws. ” The Sogrape Group is “proud” to “have always conducted its business in strict accordance with the law and has been recognized in accordance with the strictest ethical standards with which it is associated in the market,” adds an e-mail explanation.
