Portugal's economy minister, António Pires de Lima, had earlier told MPs that inspectors working for the ASAE food safety and economic agency are shifting their fire away from smaller players and towards big ones. He cited the fine imposed on a major retailer as an example.


"We confirm that ASAE has fined Pingo Doce €500,000 for alleged dumping," a Jerónimos Martins official said. "The decision surprises us because we're convinced that we've observed and kept to the law and, in any case, we act with the express agreement of our suppliers, with whom we sign agreements to that effect."


The transactions in question, the company said, related to the sales drive of 1 May last year, in which significant discounts were offered to shoppers who made large purchases in the chain's stores on that day. The drive was a repetition of similar discount operations by Pingo Doce in previous years.


The law on individual restrictive practices in retailing, prohibiting dumping - the sale of items at a loss - has been in force for just over a year.