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Three hypermarkets, four suppliers fined EUR 18.8 ml-plus for price fixing
The Competition Council slapped fines worth a total 87.713 million lei (about 18.8 million euro) on seven companies in the Romanian food market (retailers Auchan, Cora and Carrefour and 4 suppliers) for price fixing, the competition watchdog announced in release on Thursday.
"The penalties were handed down following an investigation into price-fixing in the period 2010 - 2016 conducted on retailers Auchan, Cora and Carrefour and their suppliers. Sanctions were ordered for the violation of both national and European competition regulations for fixing resale (shelf) prices in retailers' promotions," the release said.
Auchan Romania was fined 36.563 million lei (7.84 million euro), Carrefour Romania - 26.995 million lei (5.79 million euro), Romania Hypermarche (Cora) - 12.41 million lei (2.66 million euro), Quadrant-Amroq Beverages - 5.984 million lei (1.28 million euro), Star Foods EM - 3.931 million lei (843,599 euro), Strauss Romania - 1.786 million lei (383,236 euro) and Nelson Prod - 43,113 lei (9,252 euro). Carrefour Romania SA acknowledged the anticompetitive behavior and thus benefiting from a reduction of the fine.
The Competition Council found that in certain cases shelf prices were not set according to the demand and offer market mechanism, but the supplier and the retailer agreed on a fixed or minimum price for the products' resale to the end consumer. This practice results in higher prices for the end consumer, as the retailer cannot move the price below the limit established with the supplier.
The fines ordered by the Competition Council shall be fully directed to the state budget.
The sanctioned companies may challenge the decision of the competition watchdog at the Bucharest Court of Appeal within 30 days from the publication of the decision.
This is the second investigation conducted by the competition authority into the food market and which ends in the enforcement of sanctions. In 2015 the competition authority fined retailers Metro, Real, Selgros, Mega Image and their suppliers a total of roughly 35 million euro for price fixing in the period 2005 - 2009. The fines were collected by the National Agency for Fiscal Administration. Some of the penalized companies challenged in court the decision of the competition authority, and the lawsuits are ongoing.
"The Competition Council encourages the companies involved in anti-competitive agreements to contact the competition authority, to own up to their participation in the violation of regulations and to provide evidence of the respective agreement. By acting so, the companies may benefit from a considerable reduction of the fine, or even enjoy full immunity," the release mentions.