Press Release 19/2024
August 1, 2024

The AdC has fined an HVAC (Heating, Ventilation and Air Conditioning) systems and equipment supplier, operating nationwide, for establishing a vertical agreement with dealers concerning the provision of after-sales technical support services.
The vertical agreement involved not only setting the prices for services offered by the dealers to customers but also imposing geographic restrictions on the provision of these services.
The company cooperated with the AdC, refraining from contesting the factual allegations, ceasing the practice, and voluntarily paying a fine of 103,000 euros by agreeing to the settlement procedure. The company supplies products such as domestic boilers, air conditioners, radiators, and electric water heaters, among others.

Anti-competitive Practice

The practice in question was based on contractual clauses, in some cases in effect since 2006, which the company reviewed as part of the process. These clauses included:

• The division of the market among the company's dealers for the provision of out-of-warranty after-sales technical support services, prohibiting dealers from providing services outside their contractually assigned territories; and
• The setting of the prices for services provided by the dealers to their respective customers.

Competition law prohibits agreements between companies, concerted practices between companies, and decisions by associations of companies that have the object or effect of significantly preventing, distorting, or restricting competition in all or part of the national market, notably those that involve:

a) Directly or indirectly fixing purchase or selling prices or any other transaction conditions; [...]

b) Dividing markets or sources of supply; [...]

For more information on the case identified as PRC/2023/6, please visit the AdC website.

The Settlement Procedure

The fine was reduced by 30% from what it would have been had the company not cooperated and agreed to the settlement procedure. This procedure allows for significant procedural efficiencies while still penalizing companies that commit competition infringements.
The AdC has recently approved regulations for the implementation of the settlement procedure, detailing the steps taken by the AdC under this mechanism to foster better cooperation between the institution and the involved parties, which can be consulted here [in Portuguese].