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It is one more accusation from the Competition Authority (AdC) that points to a large distribution. On this occasion, AdC accuses Modelo Continente, Pingo Doce and Auchan of negotiating consumer prices in supermarkets with the alcoholic beverage provider Active Brands.
In a note sent this Friday, the Competition reveals that, after the investigation, “it concluded that there are indications that the supermarket chains used the commercial relationship with the supplier Active Brands (which is part of the Gestvinus / João Portugal Ramos economic group) to aligning the retail prices (RRP) of the latter’s main products, to the detriment of consumers ”.
Active Brands was, at that time, a supplier of wines and white drinks, of the Licor Beirão and Porto Velhotes brands, among others, the AdC highlights. The investigated behaviors took place between 2008 and 2017.
The Contest highlights that, “if confirmed, the conduct in question is very serious.” It is, again, “a” hub-and-speak “practice in which the distribution chains resort to bilateral contacts with the supplier to ensure, through this, that all practice the same PVP in the retail market” . The practice deprives consumers of the option to choose the price of the products they buy from large retailers.
This accusation joins six others already produced by the AdC in recent months. In June 2020, the AdC accused Modelo Continente, Pingo Doce and Auchan of using the business relationship with Bimbo Donuts to align retail prices.
In July a new indictment was issued, also against Modelo Continente, Pingo Doce and Auchan, and the suppliers Sumol + Compal and Sogrape. This accusation also targeted Lidl, in the case of non-alcoholic drinks and juices, as well as Intermarché and E.Leclerc, in the case of alcoholic beverages. In addition to the companies, this accusation was directed individually at two directors and a director of Sumol + Compal and Sogrape, as well as a director of one of the distributors.
As of March 2019, AdC had indicted six large food distribution groups and three beverage providers, in three separate cases. Two of the processes were directed at Modelo Continente, Pingo Doce, Auchan and Intermarché. The suppliers affected by the price alignment were Central Beer Society and Super Bock.
A third process focused on the same four supermarket chains, in addition to Lidl and E. Leclerc. AdC accused the six chairs of using the same price matching scheme with PrimeDrinks, which distributes wine and spirits.
These positions were also directed to administrators and directors of Modelo Continente, Sociedade Central de Cervejas and Super Bock.
The Contest reveals that there are currently more than ten investigations underway in the food mass retail sector, although some are still secretive. In July, in parliament, the president of the AdC, Margarida Matos Rosa, affirmed that the large distribution sector is a priority for competition, due to the weight it has on families.
The adoption of the Note of Illicit does not determine the final result of the investigation, highlights the authority headed by Margarida Matos Rosa. “At this stage of the process, the recipients have the opportunity to exercise their rights to a hearing and defense in relation to the crimes committed against them and the sanctions they may incur.”
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