2012 agreement between EDP and Sonae limited competition, accuses regulator – Mad Money

The Competition Authority (AdC) accused EDP and Sonae having established an illegal agreement, considered “restrictive of competition,” said the governor on Thursday. At issue is the partnership created in 2012 to implement the “Plan EDP Continent” campaign.

“The Competition Authority confirms sending Illegality note (statement of objections) to five companies in the EDP and Sonae groups on suspicion of carrying out an agreement restricting competition within the established partnership for the implementation of the commercial campaign Plan EDP Continent, held in 2012, “details the competition Authority, in a statement.

the agreement between the two companies involved a “mutual covenant not to compete in the areas of marketing of electricity and natural gas and retail distribution of food in continental Portugal, the two-year period,” said the governor.

in practice, the campaign allowed customers to EDP obtain a discount of 10% on the invoice of electricity, to credit the Mainland card.

the problem, adds the CA is that, in the light of Competition law, this campaign “may constitute, under certain circumstances, an unlawful agreement market-sharing between the companies involved.”

the regulator explains that these indications of violations of the law have to do with ” mutual agreement “created between the marks when the law” expressly prohibits agreements between undertakings which, having to restrict object sensitively, competition in all or part of the national market are, by their very nature, a high potential terms of negative effects, reducing the welfare of consumers and damaging the competitiveness of companies and the economy as a whole. “

the governor points out, however, that sending Illegality Note EDP and Sonae does not determine the outcome of the investigation. “At this stage, the opportunity to target companies from exercising their right to a hearing and defense in relation to illicit to them charged and the penalty or penalties that may apply is given,” the statement concluded.

EDP “surprise” with charge

EDP, however, have reacted. In a statement, the electrical states that this campaign was “a pioneer in the allocation of benefits to customers at an early stage of the residential market liberalization process, chose to hold its electricity supply contract in the free market.”

“This campaign was not followed up and allowed, however, to carry out similar campaigns by other operators,” adds the company.

energy also stresses that the AdC “know campaign from the beginning, why not hide any surprises to be now faced with this charge. “