26 March 2015

 

 

The Portuguese Competition Authority (PCA) has adopted a Statement of Objections against four companies active in the market intelligence sector, for suspicions of abuse of a dominant position in the form of a margin squeeze.

 

Margin squeeze is part of the exclusionary abuses’ category and corresponds to a behavior whereby the dominant undertaking seeks to maintain or increase its market power by foreclosing its rivals’ access to the market, thus marginalizing, impairing or eliminating effective competition, by using methods different from those governing normal competition on the merits.

 

Such type of conduct, if proven, is considered to be a serious infringement, since the defendants may have artificially explored their market power to the detriment of competition and thus, consumers.

 

If the PCA concludes that the defendants, either intentionally or negligently, committed the alleged infringement, it may impose a fine of up to 10% of their respective annual turnover in the year preceding the PCA’s final decision.

 

It should be noted that the adoption of a statement of objections does not determine the final outcome of the proceedings, meaning that the defendants are given the opportunity to exercise their rights of defence.