​Press Release 03/2019

 

 

The Northern Association of Manufacturers of Bread, Pastries and Similar Products (AIPAN) undertook to make it clear to members that each is entirely free to set its own prices, thus minimising the potential restrictive effects resulting from declarations made by the Association’s president regarding the price of bread.

 

AIPAN’s commitment was proposed following the opening of a procedure by the AdC, after an investigation into statements made in 2018 by the association’s president regarding the price of bread.

 

The AdC investigation identified a series of legal concerns relating to statements made by the AIPAN president, to the extent that they could interfere with the free play of competition and with the price-setting freedom of bread-making members of the association, to the detriment of consumers.

 

Taking into considering the nature of the statements, the AdC concluded that the mere reference to a trend that prices should follow in a given market, specifically regarding their increase, could influence the price-setting behaviour and commercial strategies of market participants and promote a coordination of behaviour, also allowing them to predict with reasonable certainty the pricing behaviour of their competitors.

 

Thus, in response to the legal concerns expressed by the AdC, AIPAN presented, on April 2, 2019, a series of commitments that can be summarised as follows:

 

1. AIPAN, through its representatives, undertakes not to issue any statements or informations regarding prices or other conditions of trade that may in any way promote or permit the coordination of behaviour by members;

2. AIPAN undertakes to inform its members by means of an information letter, within 15 workdays of a final AdC decision, that prices and other conditions of trade are to be set autonomously by each member, with total freedom;

3. AIPAN undertakes to publish the above-mentioned information letter on its website, after sending it to members;

4. AIPAN undertakes to send to the AdC, within 10 workdays of sending the letters and placing it on its website, proof of sending the letter and placing it on the website.

 

In terms of Law 19/2012, of May 8 (the Competition Law), the AdC may accept commitments proposed by parties affected by legal proceedings where such commitments are deemed sufficient to eliminate the competition concerns relating to the practices in question.

 

AIPAN is obliged to comply with these commitments, subject to oversight by the AdC.

 

The commitments proposed by AIPAN are placed in public consultation for a period of 20 workdays as of today’s date.

 

Following the public consultation, the AdC will issue a final decision, taking into consideration also the comments made by interested parties.

 

The outcome of the public consultation will be published on the AdC website.

 

AIPAN, as an association of enterprises, is subjected to the Competition Law, so its decisions and initiatives may be examined by the AdC whenever they may be deemed to hinder the free play of competition.

 

 

 

April 5, 2019