The investigation carried out revealed enough evidence that, at least, from February 2008 to March 2017, the supplier SCC and the retailers under investigation resorted to their vertical relation to horizontally promote the price fixing of SCC products retail prices (hub-and-spoke agreement), a practice that qualifies as a single and continuous infringement of Article 9 of the Portuguese Competition Act and Article 101 of the TFEU, consisting of an illegal horizontal and vertical price fixing agreement (hub-and-spoke) covering the beverage sector in Portugal.
In the present case, the anti-competitive infringement entails a cross-check mechanism of retail prices charged by the retailers as a means to ensure price alignment, as well as the regular report to SCC so that it could monitor and pressure for retail price readjustments whenever deviations were identified.
In the meantime, AdC has engaged in settlement discussions with the supplier SCC and is now in the position to address a settlement notice, which will be converted into a definitive infringement decision against SCC if the company acknowledges the facts and legal qualification thereof and pays the fine.
In setting the fine to be imposed, beside the seriousness of the infringement, the market affected, the duration of the infringement, the degree of SCC involvement, the existing previous administrative competition offences and collaboration given throughout the proceedings, the AdC took into account SCC´s turnover in the last full business year prior to the envisaged decision, and a fine reduction as a result of the application of the settlement regime. The fine to be imposed will not exceed 10% of SCC´s total turnover.