Auchan, Modelo Continente, Pingo Doce and supplier fined 5.6 million euros

The Competition Authority (AdC) has fined supermarket chains Auchan, Modelo Continente and Pingo Doce, as well as joint liquor supplier Active Brands/Gestvinus, for their participation in the price-fixing scheme.

In a statement, AdC noted that “Three supermarket chains – Auchan, Modelo Continente and Pingo Doce – as well as the joint supplier of alcoholic beverages Active Brands / Gestvinus and the person in charge of this company, have been approved to participate in the Consumer Sales Price Scheme (PVP) for products from this supplier”.

According to the same note, “The AdC investigation showed that participating distributors ensured the alignment of retail prices in their supermarkets through contacts established through the joint supplier, without the need to communicate directly with each other.”organizer said.

“This practice eliminates competition, denying consumers a better price choice, while ensuring better levels of profitability for the entire distribution chain, including supplier and supermarket chains.”confirmed on AdC.

As per the competition, “For the current violation, a total fine of €5,665,178 has been imposed.”According to the published data, Ative Brands was fined 2.3 million euros, Modelo Continente was fined 1.4 million euros, Pingo Doce was fined 1.2 million euros, Auchan was fined 660,000 euros and the individual responsible was 5,178 euros.

AdC recalled it in November 2020 “issued a Nota de Ilicitude (or a memorandum of indictment) relating to this case, having subsequently given opportunity to all responsible corporations and individuals to exercise their rights of hearing and defence, which have been duly considered in the final decision.”.

Thus, in the present case, competition “He determined that this practice lasted for more than eight years – between 2009 and 2017 – and targeted various products from the supplier, such as wine, spirits and alcoholic beverages/snacks. Large distribution lawsuits decided between 2020 and 2022 included penalties against six chains A supermarket and nine suppliers for the “axis and talk” anti-competitive practice.remembered.

The committee also indicated that the fines imposed by “Determined by the volume of sales of sanctioned firms in the affected markets in the years of practice.”Be “According to the competition law, fines cannot exceed 10% of the company’s sales in the year prior to the penalty decision and 10% of the annual wage earned in the last year of the violation, in the case of natural persons.”.

By setting these fines, “The AdC takes into account the severity and duration of the breach, the degree of companies’ involvement in the breach, and the companies’ economic situation, among other circumstances, in accordance with international best practices.”according to the same note.

Pingo Doce announces that it will appeal to the courts

Pingo Doce considers the Competition Authority (AdC) fine to be “unfair and undue” and ensures that It will be challenged in the courts.According to an official source in response to Lusa.

“Pingo Doce confirms that it has received from the Competition Authority another decision to impose a fine, within the framework of the previous decisions”Delt company adding that “This decision is also unfair and undeserved, and therefore, like previous decisions, will be challenged in the courts to restore the truth of the facts.”.

“Nothing will stop Pingo Doce from continuing to offer the Portuguese the best discounts, the best rates and promotion opportunities, as it has always done”The same source confirmed.

Auchan “completely refutes” the practices

Auchan said it “totally refutes the practices attributed to it by the Competition Authority” (AdC), which has once again fined the supermarket chain, adding that it will “apply in court” against the decision.

The company said, “Auchan completely refutes the practices attributed to it by the competition authority in the final decision within the scope of the administrative offense process and will appeal the decision adopted in court, and of course the exercise of the rights stipulated in the competition law,” in a memo sent to the company.

The group also ensured that “all training and control processes for its employees are guaranteed internally in order to avoid any kind of behavior that may lead to a violation of competition rules.”