Supermarkets Auchan, E. Leclerc, Modelo Continente, and Pingo Doce, as well as supplier Unilever have been fined over €130 million by the Competition Authority (AdC) for a consumer price fixing scheme.
"The investigation concluded that, through contacts established through [Unilever], without the need to communicate directly with each other, the participating distribution companies ensured the alignment of retail prices in their supermarkets. It is a conspiracy equivalent to a cartel, known in competition law terminology as a 'hub-spoke' model," the AdC detailed in a statement.
Auchan was fined €16.19 million, Modelo Continente €50.8 million, and Pingo Doce €35.7 million. Unilever will pay €26.6 million, and E.Leclerc €2.9 million.
According to the AdC, this practice “eliminates competition, depriving consumers of the chance of better prices, while ensuring better levels of profitability for the entire distribution chain, including both supplier and supermarket chains".
The regulator said it issued an indictment in November of last year, “giving the opportunity to all companies to exercise their right to hearing and defence, which was duly considered in the final decision".
"The PCA has determined that the practice lasted almost ten years - between 2007 and 2017 - and targeted several products of Unilever from the food, home care, and personal care areas, such as detergents, deodorants, ice creams, sauces, and teas”.
The statement also says that, since 2017, the regulator has sanctioned six supermarket chains, as well as seven joint suppliers for anti-competition practices.
The AdC noted that this is the seventh sanctioning decision in the investigations conducted against large retail chains, which have resulted in fines totalling more than €645 million.
Why doesn't the government use the €130 million fine to continue to provide food support to the hundreds of families that Social Security have removed from their list of beneficiaries and are the one's most likely to have suffered most by these companies illegal practices.
By Greg from Other on 11 Jun 2022, 08:30
Drop in the bucket...Amazon to Walmart...etc...Did you see the Inflation report Stateside...Passing those savings onto sheep...Go Benfica!
By Sakamoto Saurez from Lisbon on 11 Jun 2022, 11:57
Curious to know where the money will go.
By John Silva from Lisbon on 11 Jun 2022, 22:19
This is not the first time and the likelihood of any of the supermarket chains paying their fine is very slim. In the numerous times they have been fined previously, only once have they had to pay the fine. That was due to an employee of on of the chains releasing emails detailed price fixing. Other times, the supermarket chains have appealed, then appealed and the 3 years by which the case has to be settled once it has gone to the courts has expired. Price fixing by companies is not just a problem in Portugal. It's also rife in France and Belgium.
By Howard Williams from Beiras on 13 Jun 2022, 12:49