“For its participation in a Sales-Pricing-Consumer (PVP) scheme,” the Competition Authority (AdC) acknowledged “five supermarket chains – Auchan, E.Leclerc, Intermarché, Modelo Continente and Pingo Doce – as well as a joint supplier of Sogrape and individual directors (Director and Director) General of Sogrape and Business Unit Director at Modelo Continente), in a decision announced today in Release.
Aiming at “various Sogrape products, such as wines from Portuguese brands such as Mateus, Gazela, Casa Ferreirinha, Porto Ferreira, Offley, Sandeman, Jack Daniel’s, Macallan whiskey and Taittinger champagne”, the practice will continue between 2006 and 2017, the competition believes.
The AdC argues that those involved are responsible for “combining prices at the expense of consumers”. “This practice is harmful to consumers and affects the general Portuguese population,” asserts the entity, “since the business groups involved represent a large part of the large national food distribution market.”
By making connections “through the common supplier, without having to communicate directly with each other, the participating distribution companies ensure that the retail prices of their supermarkets are aligned, in a conspiracy equivalent to a cartel, known in competition law terms as the ‘axis’” and spoke ‘, adds competition in contact.
“In December 2020 and more recently, on November 2 and 17, 2021, AdC has already indicted these supermarket chains and three beverage suppliers – Sociedade Central de Cervejas [dona da Sagres e Luso], primal drinks e Super Buck – In addition to the supplier of packaged bread and cake – Bimbo Donut – with the same kind of practice”, he puts into context the entity led by Margarida Matos Rosa.
AdC also reminds that the now-approved practice that includes products distributed by Sogrape, “eliminates competition, deprives consumers of a better price choice, and ensures better levels of profitability for the entire distribution chain, including suppliers and supermarket chains.”
“Since it cannot be ruled out that the conduct investigated is still ongoing,” a decade after the gathering approved Friday, “in the resolution now adopted, the ACC imposed an immediate cessation of this practice” by the groups involved.
Pingo Doce, Sogrape and Modelo-Continente with the heaviest fines
The ‘sanction decision’ resulted in a total fine of €17,231 million ‘for the six companies involved and the individual officials of two of them are now subject to sanctions.
The amount is distributed in descending order: 5.5 million euros for Pingo Doce Distribuição Alimentar (controlled by the Jerónimo Martins group); 4.8 million euros for Sogrape Distribuição; at 4.3 million for Modelo-Continente Hipermercados (of the Sonae Group, owner of PÚBLICO); In the amount of 1.21 million euros for ITMP Alimentar (retailing food under the Intermarché brand); at 1.20 million for Auchan Retail Portugal (from the French group Auchan, which for years worked in the country under the brands Jumbo and Pão de Açúcar); and 140,000 euros for Cooplecnorte (which operates under the French supermarket brand E.Leclerc).
The remaining fines – 13.5 thousand euros and two thousand euros – were set on those responsible for the accident, whose identity has not been revealed.
The fine now imposed is a result of the adoption of the Notice of Illicitness (formalization of accusation by AdC) in June 2020, having been given, according to the entity, “the opportunity for all businesses and persons to exercise their right to be heard and defended, which has been duly considered in the final decision.” “.
The officials – companies and individuals – who are the target of the contest can now appeal the decision of AdC.
Sogrape will resume
In a reaction after the AdC’s decision was known, the Sogrape Group stated, in a statement sent to editorial offices, that it “considers this conviction by AdC as completely unfair, incorrect and even incomprehensible, and trusts that it will have, in a judicial appeal, an opportunity to clarify the facts.
She further argues that she has “never in her history been accused of any anti-competitive behaviour” and that she “even has a strict program of compliance and training of its employees with the aim of ensuring strict compliance with the rules of competition law.” The Sogrape Group is “proud” to “always direct its business in strict compliance with the law and to have the most demanding ethical standards to which it relates in the market,” adds the clarification sent by email.
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