Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Portugal antitrust body says top retail chains fixed drinks prices

Published 03/22/2019, 04:24 PM
Updated 03/22/2019, 04:25 PM
© Reuters. FILE PHOTO:  Consumers wait to buy meat products at a Pingo Doce supermarket in Lisbon

LISBON (Reuters) - Portugal's competition authority on Friday accused six big supermarket chains of illegally fixing prices for some drinks in collusion with three beverage suppliers between 2003 and 2017.

It said it found that Modelo Continente, owned by Portugal's retailer Sonae, Pingo Doce, run by Jeronimo Martins, and France's Auchan and Intermarche aligned prices for beer and beverages distributed by Heineken-owned Central de Cervejas e Bebidas and by the local Super Bock Group.

The four supermarket chains, as well as the local units of Germany's Lidl and France's E.Leclerc, also used the same scheme with the Portuguese wine and liquor distributor Prime Drinks, the authority said.

"If confirmed, that conduct is very serious," the competition authority said in a statement late on Friday, adding that the case was one of the first "hub-and-spoke" schemes to be investigated in Portugal.

"This practice is equivalent to a cartel where distributors, without communicating between themselves, resort to bilateral contracts with suppliers to promote and guarantee that all practice the same public price in the retail market."

Central de Cervejas e Bebidas denied any wrongdoing and said in a statement that it would cooperate with the authority to prove that it had acted in line with anti-trust rules.

Pingo Doce also denied wrongdoing and said it was surprised by the accusations because half of its revenues come from promotional campaigns, in which prices are often discounted.

Nobody was available for comment at the other companies.

The competition authority said it would not pre-judge the final outcome of the investigation, and that the companies will have an opportunity to defend themselves. It did not say what sanctions they could face.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.