Fines of 18.8 million euros for price fixing between retailers and suppliers | Progresiv

The Competition Council announced fines of 18.8 million euros for Auchan, Cora and Carrefour and some of their suppliers for price fixing between 2010 and 2016. The investigation has penalized both the violation of national rules and European competition rules for fixing shelf prices in the retailer's promotions. Fines of 18.8 million euros for price fixing between retailers and suppliers

"The Competition Council found that in some cases the shelf sale prices were not set according to market rules by the ratio between supply and demand but the supplier and the retailer established a fixed or a minimum price for the resale of the products to the final consumer. This practice leads to higher prices for the final consumer, the retailer being unable to lower the price below the established supplier's limit", according to the report published by the Competition Council.

The list of sanctioned companies, including the amount of the fine in each case, is the following:

Auchan Romania - 36,663,003 lei (7.84 million euros);

Carrefour Romania - 26,995,645 lei (5.79 million euros);

Romania Hypermarche (Cora) - 12,410,834 lei (2.66 million euros);

Quadrant-Amroq Beverages - 5.984.053 lei (1.28 million euros);

Star Foods - 3,930,920 lei (843,599 euros);

Strauss Romania - 1,785,767 lei (383,236 euros);

Nelson Prod - 43,113 lei (9.252 euros).

Carrefour Romania SA acknowledged the fact, thus benefiting from a reduction of the fine. The fines imposed by the Competition Council are fully paid to the state budget. The sanctioned companies may appeal the decision of the competition authority to the Bucharest Court of Appeal, within 30 days after the publication of the decision.

Cora announced that it expects the Competition Council's decision to look at the arguments of the competition authority and reserves the right to challenge the decision in court.

"We categorically reject the allegations of the Competition Council that made this decision without a minimal economic analysis, although competition rules can not be applied without the identification and assessment of economic realities. The accusations made by the competition authority are based solely on its presumptions that are not conclusively substantiated. There is no evidence in the investigation file that our company would have committed the anti-competitive act claimed by the Competition Council”, the company's representatives said.

This is the second investigation conducted by the competition authority, finalized with sanctions, on the food market. In 2015, the competition authority sanctioned retailers Metro, Real, Selgros, Mega Image and their suppliers with fines totaling around 35 million euros for price fixing between 2005 and 2009. Some sanctioned companies challenged the sanctions of the Competition Authority, and the processes are currently in the hands of the courts.

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