AdC investigates price fixing in audiovisual production services
Press release 15/2023
November 21, 2023
The investigation
The Portuguese Competition Authority (AdC) is investigating an anti-competitive practice carried out by a business association in fixing the minimum prices for audiovisual production services provided by its members.
In April 2023, the AdC opened an investigation into this practice which revealed evidencethat the business association in question had prepared, adopted, and published fee scales setting the minimum prices for audiovisual production services to be charged by its members, at least between December 2019 and the present.
The AdC issued a Statement of Objections, formally informing, in writing, the association of the objections raised against it.
The Statement of Objections
Whenever, based on the investigations carried out, the AdC concludes that there is a reasonable possibility that a final decision finding an infringement will be adopted, it issues a Statement of Objections.
With the issuance of the Statement of Objections, on November 21 the case identified as PRC 2023/3 is now public, pursuant to article 32 of the Competition Law.
On the notification of the Statement of Objections, the AdC sets a reasonable period of time for the company, or, in this case, the business association, to put forward its reply regarding any issues that may be relevant to the decision of the case, the evidence produced or the sanctions it may incur.
Once the investigation is concluded, the AdC adopts a final decision.
The practice
The practice in question is the fixing by a business association of the minimum prices to be charged by member companies, in this case, fees for the provision of audiovisual production services.
Business associations must refrain from fixing the prices that their members charge for providing services, as this is contrary to the Competition Law and harmful to consumers.
In this case, the main affected parties are the technicians' clients: advertising, TV, and movie production companies.
The violation of competition rules not only reduces the welfare of consumers, but also harms the competitiveness of companies, penalizing the economy.
