Pingo Doce announced today that it will challenge the €35.7 million fine of the Competition Authority (AdC) in court, deeming it “an unfair and undeserved decision”.
“Pingo Doce confirms that it has received from the Antimonopoly Office another decision to impose a fine, within the previous ones. This decision is also unfair and undeserved and therefore, like the previous ones, it will be appealed in court in order to restore the veracity of the facts,” the message says. supermarket chain sent to Luce.
The group also claims that nothing “will prevent it (…) from continuing to offer the Portuguese the biggest discounts, the best prices and promotional opportunities, as it has always been.”
The AdC fined supermarkets Auchan, E. Leclerc, Modelo Continente and Pingo Doce, as well as joint supplier Unilever, more than 130 million euros for a consumer price fixing scheme.
In a statement released today, the AdC says it has sanctioned four supermarket chains – Auchan, E. Leclerc, Modelo Continente (of the Sonae group) and Pingo Doce (of the Jerónimo Martins group), as well as the general food supplier Home. Care and Unilever personal care products, which included participation “in a consumer pricing (PVP) scheme for this vendor’s products.”
“The investigation concluded that through contacts established through a common supplier, without the need for direct communication with each other, the participating distribution companies ensure the equalization of retail prices in their supermarkets, in collusion equivalent to a cartel, known in competition law terminology as a “hub and knitting needle, ”AdC clarifies in a note.
The decision ends with a fine of 132 million euros.
Auchan was fined €16.19 million, Modelo Continente €50.8 million and Pingo Doce €35.7 million. Unilever will have to pay €26.6 million and E.Leclerc €2.9 million.
According to the AdC, this “practice eliminates competition by depriving consumers of better price choices, but delivering higher levels of profitability for the entire distribution chain, including supply chains and supermarkets.”
The regulator recalls that in November 2021, it adopted “a mark of illegality (charge) in this case, providing an opportunity for all companies to exercise their rights to a hearing and defense, which was duly taken into account in the final decision.”
“In this case, the AdC determined that the practice lasted for almost a decade – from 2007 to 2017 – and targeted several products from a supplier in the food, home and personal care sectors such as detergents, deodorants, ice cream, sauces. and teas,” the message says.
It also explains that since the launch of search-and-seizure procedures in large distribution companies in 2017, six supermarket chains have already been sanctioned, as well as seven conventional suppliers, for anti-competitive “hub and spoke” practices.
AdC points out that this is the seventh sanctioning decision in a massive investigation following search and seizure procedures in 2017 that have already resulted in fines totaling more than 645 million euros.
