Press Release 24/2024

November 20, 2024

 

The investigation

The Portuguese Competition Authority (AdC) carried out an investigation into the setting of minimum price lists in Portugal, which led to the issuing of a Statement of Objections (accusation) against an association of companies providing consultancy services for architectural and engineering projects

In June 2024, the AdC opened an investigation, which revealed evidence that the association of companies in question had drawn up, adopted and published fee scales, setting the minimum prices to be charged by member companies and serving as a reference for the entire market, throughout Portugal.

In the course of the investigation, the AdC discovered that the business association in question had adopted this anti-competitive practice consistently since, at least 1994.

The AdC issued a Statement of Objections, formally informing, in writing, the association of the objections raised against it.

The case identified as PRC/2024/3 is public, in according with article 32 of the Portuguese Competition Act.

 

The Statement of Objections

Based on the investigations carried out, whenever the AdC concludes that there is a reasonable possibility that a final decision finding an infringement is to be adopted, it issues a Statement of Objections.

Pursuant to the notification of the Statement of Objections, the AdC sets a reasonable period of time for the business association to exercise its right to hearing and defense 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 at stake consists in the fixing by a business association of the minimum prices that can be charged by both associates and non-associates in the relevant market.

Business associations must refrain from fixing prices charged for providing services, as this is contrary to competition rules and harmful to consumers.

According to competition rules, companies must be autonomous in setting prices and other commercial conditions for products sold or services provided.

The violation of competition rules not only reduces the welfare of consumers, but also harms the competitiveness of companies, penalizing the economy.

The AdC prepared the Guide for Business Associations, which is available in its website. This is a document that aims to inform business associations and its members concerning the decisions or behaviours to avoid, but also to promote the benefits of competition.