Press Release 22/2021

 

The AdC – Portuguese Competition Authority issued a Statement of Objections to four supermarket chains and a supplier of food, home and personal care products for price fixing in supermarkets.

After investigation, the AdC concluded that there are indications that four of the main supermarket chains present in Portugal used their commercial relationship with one of the most important suppliers of food, home and personal care products to align the retail prices of the latter's main products, to the detriment of consumers.

 

The investigated practice

The investigated practices took place between 2006 and 2017.

If confirmed, the practice which in competition terminology is called a hub-and-spoke, is very serious. It is a practice similar to a cartel in which the large retail chains do not communicate directly with each other, but instead use bilateral contacts with the supplier to guarantee, through the latter, that they all practice the same retail price in the market.

This practice is harmful to consumers because it deprives them of the choice, in terms of pricing, of the products they acquire in large supermarket chains.

The Statement of Objections now issued integrates the fourth set of “hub-and-spoke” cases investigated in Portugal following the dawn raids performed by the AdC in 2017 and adds up to the eight cases in which the AdC also adopted Statements of Objections and three in which the AdC adopted sanctioning decisions.

The AdC emphasizes that issuing a Statement of Objections does not determine the final outcome of the investigation.  At this stage of the procedure, the undertakings are given the opportunity to exercise their rights of defence against the alleged infringements and possible applicable sanctions.

The Statement of Objections was issued on November 2, 2021.

 

November 4, 2021