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In the fall of 2019, the Norwegian Competition Authority opened an investigative case against the service station chains Circle K and YX. It has already been completed, the Authority announces in a statement.
The background to the case was the suspicion that the two chains collaborated in fixing fuel prices. The theory of the audit was that the online publication of indicative prices by the chains facilitated parallel increases in national pump prices, which it believed could violate the prohibition of illegal cooperation between competitors.
– We have been concerned about competition in the fuel market for a long time and have closely followed the players over a period of several years. In the fall of 2017, we observed a change in the weekly price pattern that contributed to the suspicion of a possible illegal collaboration, says competition director Lars Sørgard in the press release.
The investigative case has now been closed and the two actors have agreed, through so-called corrective measures, to stop publishing indicative list prices for fuel on their websites.
Circle K promoted the proposal
Press spokesman Knut Hilmar Hansen at Circle K says the company is pleased that the case is now out of the world.
– Yes, we are pleased to have agreed on the corrective measures and we have had a good dialogue with the audit, he tells DN.
– Do you agree with these measures and admit that the limits have been extended?
– No. The Norwegian Competition Authority is clear that a company that accepts corrective measures does not admit guilt. The decision does not mean that the Authority has taken a position on whether Circle K has violated the Competition Law.
Hilmar Hansen also claims that it was Circle K who made the proposal to stop publishing indicative prices online.
Follow-up established in 2016
When it became clear in October last year that the Authority opened an investigation, Marita Skjæveland, deputy head of the Department of Construction, Industry and Energy at the Norwegian Competition Authority, could not say which actors were being investigated.
– We have been concerned about the state of this market over time. In 2016, we established a market follow-up and based on what we have received since then we believe there is now a basis to initiate an investigation, he said at the time.
The Authority writes in today’s press release that there was a change in practice in 2017. When pump prices at filling stations had previously increased to the indicative list price every Monday and Thursday, Circle K changed this strategy, with the stated objective of “striving for more uniform supplier prices”.
According to the audit, this led consumers to have little predictability about when they would pay for refueling, as the price increase apparently took place on random days.
Prices changed at the same time
The audit writes that the price pattern worked as follows:
“In the days when Circle K has increased pump prices, they have first posted a new updated indicative list price on their website at 08:00. Subsequently, YX has posted an updated list price on their website, before both players have raised pump prices at the same time at 10:00. Other industry players have followed suit. “
The Authority believes this is of limited value to consumers, but great value to competitors, as the indicative list prices on the website act as a signal to competitors that prices will rise at 10.00, which in turn, it means that players know when to set prices. and at what level. (Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases via a link, which leads directly to our pages. Copying or other use of all or part of the content may only be done with written permission or as permitted by law. For more terms, see here.
