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Fine imposed for vertical price-fixing between Síld og fisk and Matfugl

7. November 2011
Snowcap Mountain
  • Ali_FoodbirdAn 80 million króna fine for collusion regarding the retail pricing of meat and processed meat products that the meat processors had pre-labelled for Haga (so-called pre-labelling).
  • Instructions issued to strengthen competition.

The background to the case is that in December 2010 the Competition Authority published a decision reporting infringements by, on the one hand, the Bonus stores, and on the other, Sláturfélag Suðurlands, Reykjagarður, the Meat Processing Plant of Kaupfélag Skagfirðinga, Norðlenska, Kjarnafæðis and Kjötbankans in contravention of Article 10 of the Competition Act through a restrictive co-operation on prices. The companies did this through bilateral agreements or concerted practices in connection with the retail pricing of meat and processed meat products that the meat processors had price-marked for Bónus.

Þessi fyrirtæki óskuðu eftir því að ljúka málinu með sátt við Samkeppniseftirlitið. Á þeim grundvelli nýtti  Samkeppniseftirlitið sér heimild samkeppnislaga og gerði sátt við hvert þeirra. Í sáttunum fólst m.a. að fyrirtækin viðurkenndu brot á  samkeppnislögum og greiddu samtals 405 mkr. í sekt vegna þeirra.

Síld og fiskur and Matfugl requested conciliation talks with the Competition Authority, but these talks did not result in an outcome. The Competition Authority therefore had to take a position on the companies' actions in a separate decision, and this is done in a decision published today.

Ákvæði samkeppnislaga banna framleiðendum og smásölum að hafa með sér samráð um endursöluverð (lóðrétt verðsamráð). Í málinu fór fram umfangsmikil athugun á m.a. tölvupóstssamskiptum Síldar og fisks og Matfugls við Bónus. Þessi gögn sýna að annars vegar Síld og fiskur og Matfugl og hins vegar Bónus höfðu nána samvinnu um smásöluverð Bónuss og afslætti frá því. Fólst í þessu mun meiri samvinna heldur en einföld samskipti um verðmerkingar á kjöti og unnum kjötvörum. Voru þessi brot Síldar og fisks og Matfugls til þess fallin að valda almenningi samkeppnislegu tjóni. Er talið hæfilegt að leggja á Langasjó ehf. (móðurfélag Síldar og fisks og Matfugls) 80 mkr. í sekt vegna brotanna.

Gögn málsins sýna m.a. að af samráði þessu leiddi að neytendur voru blekktir í tengslum við forverðmerkingar á kjötvörum. Haft var samráð um hvert hið „marked price“ what it should be and how much of a discount should be given from that price, ranging from 10% up to a 40% discount. However, it is clear that the marked retail price was never available to consumers and was therefore not a genuine price reduction. The Competition Authority has therefore issued specific instructions to Síldar og fisks and Matfugl with a view to strengthening competition. These are the same type of orders that apply to the meat processing companies that previously settled with the Competition Authority, see press release from 14.12.2010. Í þeim felst m.a. að Síld og fiskur og Matfugl skulu hætta öllum afskiptum af smásöluverði, afslætti frá smásöluverði og smásöluálagningu matvöruverslana og hætta að merkja kjötvörur með smásöluverði.

The settlement in question from 2010 has led to significant changes in the food market, as from 1 June 2010, Haga's stores stopped accepting all pre-labelled meat products, and the meat processing companies stopped such labelling for all their customers. Following this, some companies have, of their own accord, discontinued pre-labelling, e.g. the Cheese and Butter Company. The Consumer Authority has established specific rules to ensure that retailers' price labelling is adequate, see Regulation No. 563/2011. Today's decision by the Competition Authority ensures that Síld og fiskur and Matfugl also make the necessary changes to their operations. Further information about these changes is available find here.

In May 2008, the Competition Authority published a report on supplier trading agreements and other forms of business cooperation in the food market. The report found that competition in the sale of pre-packaged meat products was limited. In this context, it was noted, among other things, that the price difference for pre-packaged products in supermarkets was much smaller than for other products. In its price surveys, ASÍ has repeatedly pointed out that this small price difference demonstrates limited price competition and is primarily a result of pre-labelling. After the aforementioned changes came into effect, on 27 June 2011, ASÍ conducted a price survey which showed that the price difference between supermarkets on products that were previously pre-labelled had increased significantly. The Competition Authority hopes that its decision today will further increase competition in these important consumer markets.

See the decision for details No. 36/2011.

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