[ad_1]
The Competition Authority (AdC) accused the supermarket chains Modelo Continente, Pingo Doce and Auchan and Beiersdorf, a supplier of cosmetic and personal hygiene products, of price agreement between 2008 and 2017, it was announced this Wednesday.
The Competition Authority accused the three food distribution groups Modelo Continente, Pingo Doce and Auchan and the supplier of cosmetic and personal hygiene products, Beiersdorf, of practices equivalent to a cartel.“The AdC statement establishes that the note of legality (accusation), issued, was adopted on December 2.
The investigation carried out by the body chaired by Margarida Matos Rosa concluded that there are indications that the three groups of large retailers “used the commercial relationship” with Beiersdorf, a supplier of products for the Nívea, Hansaplast, Labello or Harmony brands, among others. , to “align the retail prices” of the main products, “to the detriment of consumers.”
In addition to the three large distribution groups, the accusation also falls on the supplier Beiersdorf, with the AdC specifying that the investigated behavior “lasted several years”, having been practiced between 2008 and 2017.
If confirmed, the conduct in question is “very serious”, says the Competition Authority, pointing out that it is a practice equivalent to a cartel in which distributors do not communicate with each other, as is often the case in a cartel, resorting to rather, to “bilateral contacts with the supplier” to “promote or guarantee, through this, that all charge the same price to the public.”
At stake is a practice that, in competition terminology, is called ‘hub-and-speak’, which, the AdC emphasizes, “hurts consumers”.
The AdC emphasizes, however, that the adoption of the Notice of Illegality “does not determine the final result of the investigation”, recalling that at this stage of the process, the recipients are given the opportunity to “exercise their rights of audience and defense in relation to the illegal acts charged and the sanctions they may incur ”.
The accusation known today follows another, on November 24, in which the AdC accused the same three large distribution groups of the same practice with Active Brands, a supplier of wines and white drinks under the brands Licor Beirão and Porto Velhotes.
The body chaired by Margarida Matos Rosa currently has more than ten investigations in the large food distribution sector, some of which are still subject to secrecy.
The statement affirms that the large food distribution sector is among the priorities defined by the AdC, “taking into account the importance it has for the majority of Portuguese consumers and for the daily supply of families.”
Sonae MC “absolutely” rejects AdC’s accusation of price agreement
Sonae MC, owner of Modelo Continente, “absolutely rejects participation in the agreement or practice of price agreement”, after an accusation revealed today by the Competition Authority (AdC).
We are aware of our legal obligations and we absolutely reject participation in the price or practice agreement with any other economic operator.“The company said in a statement.
In reaction to this announcement, Sonae MC considers “deeply objectionable that the AdC, once again, makes these accusations known without ensuring prior knowledge of their content, by the parties involved”, regretting that “the good name is questioned and the reputation of Sonae MC and the company in which it participates without previously guaranteeing the right of defense, since the accusation represents only a provisional stage, still subject to the exercise of the right of defense of the parties involved ”.
The group also indicates that the “accusation will be analyzed and, at the appropriate time and place”, will use all the means at its disposal, to safeguard its “rights, reputation, values and integrity”.
We reiterate our commitment to carry out our activity in strict compliance with the law, specifically with regard to competition regulations. Sonae MC and its subsidiary are ideal entities, with a relevant role, in a notoriously competitive market, guaranteeing, today and always, an offer of quality products and services, at the best prices, for their clients.”, The group finished.
