COMMUNICATION

AdC imposed fines on large retail food chains and suppliers for price fixing

The Portuguese Competition Authority (AdC) condemned six large food retail chains, two beverage suppliers, a board member, and a director for indirect price fixing of the suppliers’ products, imposing a total fine of circa EUR 304 million.


There are two decisions in different proceedings: the first decision is related to an alleged indirect price fixing, for more than nine years, between four large food retail chains, and a beer supplier.


The second decision refers to an alleged indirect price fixing, for more than 10 years, between six large food retail chains (four of them also condemned in the first proceedings), and a wine and spirit drinks supplier.


Both decisions are concerned to an alleged practice of hub-and-spoke, in which the distributors do not communicate directly with each other, but they use bilateral contacts with the supplier to promote or guarantee through the latter that they all practice the same retail price in the market retailer.


These are the first decisions in Portugal for a hub-and-spoke practice.


The entities concerned can lodge an appeal to the competent appellate court.

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