At least from May 2007 to May 2017, Primedrinks, a company specialized in the distribution of alcoholic beverages in Portugal, and the major food retailers under investigation (“Auchan”, “Cooplecnorte”, “ITMP”, “Lidl”, “MCH” and “Pingo Doce”) resorted to their vertical relation to horizontally promote the retail price fixing of Primedrinks products (hub-and-spoke agreement). The practice under investigation comprised a cross-check mechanism of retail prices charged by the retailers as a mean to ensure price alignment, as well as the regular report to Primedrinks so that it would monitor and pressure for retail price readjustments whenever deviations were identified.
If prices were not adjusted to achieve retail price alignment, the food retailers would threaten Primedrinks with the suspension of purchases or compensation for loss of profit as a result of lower prices. Primedrinks also retaliate against the deviating retailers, by cutting, or threatening to cut, supplies.
In March 2019, the AdC adopted the respective Statement of Objections, having given the opportunity to the affected companies to exercise their right to be heard and defence, which was duly assessed and considered in the final decision.
The AdC also carried out, during the preliminary investigation phase, complementary diligences of evidence requested by the targeted companies, whose results were also considered in the final decision. The Final Decision was adopted on 18 December 2020.
Modelo Continente, Pingo Doce, Auchan and Intermarché, as they had already been condemned in a first decision (PRC/2017/1), were applied, in legal cumulation, single competition fines.