Member Article

PORTUGAL

I. Courts

The Competition Court reduces fine of EUR 38.3 million imposed on EDP and Sonae by 10%

On 30 September 2020, the Competition, Regulation and Supervision Court (Competition Court) reduced by 10% the fine of EUR 38.3 million imposed by the Portuguese Competition Authority (PCA) on EDP and SONAE in May 2017. These companies had been accused for concluding a non-competition agreement as part of the partnership created for the implementation of the "EDP Continente Plan" commercial campaign in 2012.

In the view of PCA, EDP and Sonae undertook not to enter their respective markets through the alleged non-competition pact, by obliging Sonae not to compete in the supply of electricity in mainland Portugal for a period of 2 years. The PCA considered that the companies were potential competitors in this market, particularly since the practice took place in the context of the liberalisation of the supply of electricity and natural gas in Portugal.

Despite confirming the PCA’s decision on the existence of the non-competition agreement between these companies, the Competition Court decided to reduce the amount of the fine to EUR 34.5 million after it was shown that the partnership created between the two undertakings from which the non-competition agreement arose, had pro-competitive effects.

II. Portuguese Competition Authority

The Portuguese Competition Authority accuses six supermarket groups and twodrinks suppliers

On 4 July 2020, the Portuguese Competition Authority (PCA) accused six food distribution groups, one supplier and one drinks distributor of allegedly colluding on consumer prices.

The PCA concluded that there were indications that Modelo Continente, Pingo Doce and Auchan used their business relationships with the supplier Sumol+Compal, and with a distributor of wines and other alcoholic beverages, to align the retail prices of their main products. This accusation is also made against Lidl (in respect of its business relationship with Sumol+Compal), Intermarché and E.Leclrec (in respect of its relationship with the distributor of wine and other alcoholic beverages).

The charge now presented is part of the second set of "hub-and-spoke" cases investigated in Portugal, in addition to the four cases for the same practice for which the PCA has already adopted a Statement of Objections.

The companies concerned now have the opportunity to exercise their rights of defence.

The Portuguese Competition Authority accuses MEO, NOS, NOWO and Vodafone ofparticipating in a cartel to limit competition in online advertising

On 16 July 2020, the Portuguese Competition Authority (PCA) adopted a Statement of Objections in which it accused MEO, Vodafone, NO S a nd NOWO of aallegedly agreeingto limit adver tising to their respective telecommunications services on Google's search engine since 2010.

According to the alleged agreement, if consumers were to search for the telecommunications services of one of these companies, they would not see in the most visible results advertisements for the equivalent services of any of the other companies participating in the alleged agreement.

In the PCA's view, this alleged agreement would distort competition, as customers would not be able to easily access offers from other telecom companies, especially in a sector where the comparison between competing offers is already complex to begin with.

The PCA started its investigation in January 2019, following a leniency application by one of the cartel participants and the companies concerned now have the opportunity to exercise their rights of defence.

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