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Jerónimo Martins was fined in Poland 163 million euros. The country’s competition authority accuses the company that owns the Biedronka supermarkets of “deep dishonesty and lack of respect for competition.”
According to the Polish regulator, the Portuguese retailer, which owns Pingo Doce, unilaterally imposed “arbitrary, unfair” discounts on suppliers. Therefore, if the products in question did not reach the expected sale value, the company forced the agricultural producers to make a price reduction.
Due to the market power of the distribution company, the suppliers accepted unfavorable conditions “, fearful of retaliation in the future, says the prosecution.
This is the largest fine ever imposed for abuse of contractual position. By resorting to this illegal practice, Jerónimo Martins will have earned around 600 million zlotys (about 135 million euros) since 2018.
It is said that more than 200 agricultural producers were affected and the fruit and vegetable sectors were the most affected.
President #UOKiK Tomasz Chróstny imposed a fine of more than 723 million PLN on the owner of a chain of stores #Ladybug.
The Jeronimo Martins Polska company won unfairly at the expense of suppliers of food products. Details in press release➡️https: //t.co/kb3JTiNTAj pic.twitter.com/fxcVrJLC0J– UOKiK (@UOKiKgovPL)
December 14, 2020
The competition authority reports several situations in which suppliers had to return, over the course of a year, more than a quarter of the income they had obtained from sales to Jerónimo Martins. One of the producers was forced to pay an amount equivalent to more than 34 million euros.
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